AUG
31/03/2016 09:28
GENERAL
PRICE SENSITIVE
REL: 0928 HRS Augusta Capital Limited
GENERAL: AUG: Augusta Value Add Fund No.1-Successful Completion of Offer
Augusta Capital is pleased to confirm that its offering of Augusta Value Add
Fund No. 1 Limited has closed after having attracted a high level of
interest. As previously announced, Augusta Value Add Fund No. 1 Limited has
been established to acquire a portfolio of five properties including
Augusta's property at 36 Kitchener Street. Kitchener Street was acquired by
Augusta in October 2015 for $16.5 million and will be transferred at that
price as well. 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. The Fund has a term of 5 years and
will be a portfolio investment entity (PIE).
The offer of $60 million of equity was fully underwritten, with Augusta
underwriting $15 million (and committing to take a minimum of $6 million of
equity regardless of its underwriting liability). The offer was made to
wholesale investors only.
Following processing of applications, Augusta can now confirm that it will
take up $9.51 million of equity. The additional $3.51 million of equity that
Augusta is taking up above its $6 million commitment results mainly from
investors either not being able to complete the required application
information in time (such as anti-money laundering due diligence information)
or being unable to transfer funds until after the settlement date of 1 April.
Augusta has firm expressions of interests from those investors to acquire
that additional $3.51 million of equity and is currently documenting the
secondary transfers, subject to receipt of all required documents. It
expects to have completed those secondary transfers by the end of April and
to only be holding its commitment of $6 million of equity from that date.
Settlement of the Fund will occur on 1 April 2016. Augusta receives the
following fees in connection with the offer, which will be paid on
settlement:
o An offeror fee of $797,890 for establishing the fund;
o An underwriting fee of $600,000 ($300,000 of which was received in December
2015);
o An annual management fee of 1.25% of equity, reducing by 25 basis points on
the sale of each property, with a base management fee of $400,000 per annum;
o A performance fee equal to 20% of the amount by which pre-tax internal rate
of return for the Fund exceeds 8% per annum; and
o Transaction and project/development management fees are also payable, where
applicable.
-ENDS-
For further information please contact:
Mark Francis
Managing Director
End CA:00280064 For:AUG Type:GENERAL Time:2016-03-31 09:28:33
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