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- Release Date: 03/04/14 15:13
- Summary: ASSET: AUG: KCL and IPT acquisition settled
- Price Sensitive: No
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AUG
03/04/2014 13:13
ASSET
REL: 1313 HRS Augusta Capital Limited
ASSET: AUG: KCL and IPT acquisition settled
KCL AND IPT ACQUISITION SETTLED
Augusta Capital has completed its acquisition of KCL Property Limited (KCL)
and Investment Property Titles Limited (IPT) earlier this week on Tuesday 1
April 2014. As announced previously this transaction adds approximately $850
million of funds under management to Augusta's funds management business
making Augusta New Zealand's pre-eminent property fund manager with
approximately $1.2 billion of funds under management in New Zealand and
Australia.
KCL shareholders Bryce Barnett and Phil Hinton will join the Augusta
executive team effective immediately and Mr Barnett will be appointed a
Director of Augusta Capital pending the appointment of a 5th Director to
ensure the board composition remains majority independent.
The transaction has three components to it:
1. The acquisition of KCL for $15 million
2. The acquisition of IPT for $444,000
3. The appointment of Bayleys Property Services Limited (BPS) as the
facilities and property manager of the combined portfolio on a long term
contract
The acquisition of KCL is funded by way of $10 million in cash and $5 million
of Augusta scrip issued at $0.80 per share. Of the $10 million cash
component, $9.2 million has been advanced with the balance being held back as
retention pending certain targets over 18 months.
Of the $5 million in Augusta scrip, $3 million is being held back by way of
retention pending certain performance targets over two years.
The Bayleys facilities and property management contract is being provided to
Bayleys on the basis of $4.77 million in cash which was paid to Augusta on
settlement. This cash consideration reduces the net cost of the transaction
for Augusta to approximately $10.7 million.
The collaboration with Bayleys includes a number of other mutual benefits.
These include a plan to offer to the market on a 50:50 joint venture,
co-branded basis, a range of new managed property offers in both listed and
un-listed formats.
Mark Francis
Managing Director
-ENDS-
For further information please contact:
Mark Francis
Managing Director
Augusta Capital Limited
T (09) 300 6161
F (09) 300 6162
M (021) 677 242
E [email protected]
End CA:00249093 For:AUG Type:ASSET Time:2014-04-03 13:13:21
