Augusta buys industrial property in Brisbane for planned syndication
Augusta Capital [NZX: AUG], the listed property investor and fund manager, has bought industrial property in Australia's Brisbane, which it plans to offer through a syndication later this year.
The Auckland-based company entered an unconditional agreement to buy the Willawong site for $A10.66 million, and will lease the location to coatings and chemical manufacturer Akzo Nobel for an initial term of eight years, it said in a statement. The deal is expected to settle on December 1 and the purchase price represents a yield of 7.14% before stamp duty.
Augusta plans to raise $A6.75 million in a syndicated offer of the property to investors, which will probably open in September.
Last year, Augusta bought property investors KCL Property and Investment Property Titles for a combined $15.4 million in cash and scrip, giving it about 165 properties to manage, with some $1.1 billion in funds under management.
Augusta shares last traded at $1, and have increased 3.1% this year.