Augusta Capital finalises sale of Augusta House for $30 mln, plans new initiatives with proceeds
By Sophie Boot
July 10 (BusinessDesk) - Augusta Capital has sold one of its properties for $30 million, which it says will be used to pay down debt and fund future acquisitions.
The listed property investor and fund manager subdivided its Finance Centre into four parts: Augusta House, Podium Retail, Finance Centre Podium and Finance Centre Carpark. Augusta House has been sold to an undisclosed buyer who has paid $6 million in deposits so far, with settlement due on July 2. Podium Retail will settle on April 1, 2018, while the other two properties will both settle on April 1, 2019.
"While the delay in finalising the subdivision of the Finance Centre has been frustrating, Augusta has continued to receive all rent during this period and the settlement dates of the remaining three titles have not been affected," the company said.
The proceeds will be used to pay off $10 million in core debt and $17 million in debt when the company bought the 33 Broadway development in Newmarket, Auckland, for $143 million last year. This will increase its balance sheet capacity for new investments, it said.
Augusta has been moving away from owning property directly and diversifying into property syndication and funds management. The value of its assets under management increased to $1.6 billion in the year ended March 31 from $1.46 billion in 2016, with its gross management fee up 36 percent to $7.3 million.
The shares last traded at $1.06, and have gained 8.4 percent this year.