Augusta Capital sells Auckland Finance Centre for $87M

Augusta Capital sells Auckland Finance Centre for $87 million

By Suze Metherell

Aug. 13 (BusinessDesk) - Augusta Capital, the listed property investor and fund manager, has conditionally sold its Auckland Finance Centre for $87 million, pending due diligence and shareholder approval.

The deal is 8 percent above the carrying book values of the combined properties which are the Finance Centre Carpark, Finance Centre Podium, 19 Victoria Street West and Retail Title, the Auckland-based company said in a statement. The deal is expected to settle on March 24 next year and the proceeds will be used to reinvest into its funds management business.

"The sale will create material balance sheet capacity to enable the warehousing of assets for future syndication, greater levels of underwriting with respect to new deals as well as the ability to make direct investment in new fund initiatives as has been previously signalled to the market," the company said.

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 94 cents and have gained 13 percent over the past 12 months.

(BusinessDesk)

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