Ann: ASSET: AUG: Augusta Value Add Fund No.1

• Release Date: 01/12/15 08:31
• Summary: ASSET: AUG: Augusta Value Add Fund No.1
• Price Sensitive: No
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					AUG
01/12/2015 08:31
ASSET
PRICE SENSITIVE
REL: 0831 HRS Augusta Capital Limited

ASSET: AUG: Augusta Value Add Fund No.1

Augusta Value Add Fund No.1

Augusta Capital Limited is pleased to announce it has unconditionally
purchased a portfolio of properties in Auckland for a combined value of
approximately $92.8 million. It is the company's intention to combine these
assets with the already acquired 36 Kitchener Street in Auckland to form a
new unlisted wholesale fund to be known as the Augusta Value Add Fund No.1.
All assets in the Fund have the opportunity to add value through
re-development or re-positioning. The Fund's intention is to provide
investors with yield, and value upside.

Augusta is excited about the launch of this new initiative which is
consistent with the previously identified strategy to broaden our Funds
Management offerings to appeal to a wider range of investors and to give
existing investors more choice, in addition to our typical offerings of
single asset syndications.  It will also assist in providing further
recurring management fee income at a meaningful level.

The Auckland portfolio consists of the following assets:

100 Carbine Rd, Mt Wellington, Auckland
Property Description
o Substantial Industrial Complex on 4.5Ha of land in Mt Wellington, Auckland.
Approx. 30,000 sqm of warehouse is leased and also subleased to Bunnings
(Visy PET is the head tenant in respect to the subleases) as their central
Auckland distribution centre with three road frontages
o Lease in place until Oct 2017 but passing rent is significantly below
market rent
o Opportunity to reconfigure and re-lease at higher rates

54 Cook St, Auckland CBD
Property Description
o 4 level commercial building in Auckland CBD with over 4,000sqm of net
lettable area and underground carparking for 33 cars
o Land area is 1,500sqm
o The current rental is well below assessed market rental
o Opportunity to refurbish/reconfigure and re-lease at higher rates

11 McDonald St, Mt Eden, Auckland
Property Description
o The property comprises a future redevelopment site currently being used for
warehousing and bulk retailing activities by seven tenants
o Two titles totalling 10,640sqm of land. The property has great street
profile and three street frontages in the heart of Mt Eden
o WALE of 5 years and current net income is below assessed market rental
o Opportunity to re-zone to mixed use for future residential and retail
development

151 Victoria St West, Auckland CBD
Property Description
o Newly refurbished seven level commercial office tower fronting Victoria St
in the City (opposite Spark Place)
o 4,800 sqm of net lettable area including some ground floor retail and 75
carparks
o Currently occupied by NZ Post who have occupied the building since 1991 and
have 6.7 years remaining on their current term
o Current rental is below assessed market rental
o Opportunity to reconfigure and re-lease some areas and add more retail
space on the ground floor

36 Kitchener St, Auckland CBD
Property Description
o Multi tenanted multi-level office building in Auckland CBD with mixed use
zoning already in 16 strata titles plus 27 carparks
o Mixed use zoning allows for residential conversion as of right

The Fund will have a combined asset value at inception of approximately $112
million (based on valuations). The assets are 100% leased and cover the
industrial and commercial sectors. It is intended that the Fund, under
Augusta's management, will seek to un-lock and realise additional value for
Fund investors over and above the running cash yields from the assets through
a range of redevelopment propositions including refurbishment and
re-tenanting, to re-zoning of land, to conversion to residential use.

The equity for this fund has been fully underwritten by a consortium of high
net worth private investors and includes Augusta Capital making a $15 million
equity commitment of the $60 million total equity, with the balance coming
from third parties. The balance of the required capital to complete the
transaction will be provided by a prime bank on a first mortgage basis.
The fund will be offered to wholesale investors with an offer expected to be
open by January 2016 and with settlement scheduled for 1 April 2016.

-ENDS-

For further information please contact:

Mark Francis
Managing Director
End CA:00274399 For:AUG    Type:ASSET      Time:2015-12-01 08:31:05