Ann: ASSET: AUG: DRAFT YEAR-END PROPERTY VALUATIO

• Release Date: 24/04/12 11:10
• Summary: ASSET: AUG: DRAFT YEAR-END PROPERTY VALUATIONS
• Price Sensitive: No
• Download Document  2.99KB

					

AUG
24/04/2012 09:10
ASSET

REL: 0910 HRS Augusta Capital Limited

ASSET: AUG: DRAFT YEAR-END PROPERTY VALUATIONS

DRAFT YEAR-END PROPERTY VALUATIONS

Augusta Capital has now received draft valuations, undertaken for 31 March
2012 financial year end reporting purposes, for both its directly owned
property portfolio, and for its managed property syndicates.

DIRECTLY OWNED PORTFOLIO
The independent valuation of the Company's $94.52 million property portfolio
has resulted in a devaluation of 1.0% or $0.95 million at 31 March 2012.
Including write-downs of assets held for disposal, which were booked at half
year, the downward revaluation movement for the year was $1.38 million.

Excluding $8.52 million of non-core property divestments during the period,
the total value of the portfolio increased by $3.27 million. However, during
the year the company undertook capital expenditure of $4.65 million. This
capex was not fully reflected in valuation increases at the year end, and
this shortfall is the main component of the 1.0% devaluation. The capital
spend related mainly to the landlord's works associated with the new
Countdown Metro Supermarket at the Finance Centre in Auckland, as well as a
circa $700,000 elevator upgrade which is nearing completion at Brookfields
House. These large capex items are regarded as non-recurring and are expected
to be long term value drivers for the company's two core property assets,
Brookfields House and the Finance Centre.

The weighted average capitalisation rate across the portfolio is now 8.58%
compared with 9.08% last year. This 50 basis point move reflects the quality
of the General Distributors lease (Countdown Supermarket) as well as improved
occupancy at Brookfields House. The capitalisation rate tightening also
reflects the impact of property divestments.

PROPERTY SYNDICATES
The independent valuations of the company's syndicated properties have
resulted in a positive revaluation gain of 0.4% or $0.6 million across the
syndicated portfolio. The total value of the syndicated portfolio including
the recently completed Carter's Tauranga and the soon to be completed Farmers
Hastings is now $173.64 million, with a WALE of 9.3 years and weighted
average gearing level of 44.3%.

The valuation movements for both the directly owned portfolio and the
syndicated portfolio remain subject to finalisation and independent audit.
The company expects to release its preliminary financial result for the year
ended 31 March 2012 by 21 May.

The company's subsidiary Augusta Funds Management Ltd has just launched a new
syndicated offer. The subject property is located at 308 Barton Street,
Hamilton and is leased to ASX Listed JB Hi Fi Limited along with Wilson
Carparking. This offer is expected to close on 14 May 2012, with settlement
scheduled for 23 May 2012.

-ENDS-

For further information please contact:

Christopher Francis
Director
Augusta Funds Management Limited
T (09) 300 6161
F (09) 300 6162
E [email protected]
End CA:00222135 For:AUG    Type:ASSET      Time:2012-04-24 09:10:30