AUG
27/11/2015 08:30
GENERAL
PRICE SENSITIVE
REL: 0830 HRS Augusta Capital Limited
GENERAL: AUG: Redevelopment of Oji Fibre Solutions' Penrose Premises
Augusta Capital Limited is pleased to announce that it has entered into a
development and lease variation agreement with Oji Fibre Solutions (NZ)
Limited (formerly Carter Holt Harvey Pulp & Paper Limited) and the existing
Augusta managed syndicate that owns Oji's Penrose premises.
The agreement provides for an expansion and refurbishment of the existing
buildings at the Penrose premises located at 33-43 Hugo Johnston Drive. In
return, Oji is committing to an extended 15 year lease term.
The agreement is conditional on the approval of Oji's board as well as the
approval of the investors in the existing syndicate which owns the property.
Oji board approval is to be satisfied by 5pm today (27 November 2015) and
investor approval by 18 December 2015.
In order to fund the landlord's development works contribution, Augusta Funds
Management Limited proposes to re-syndicate the property to raise the
necessary capital. The investor approval sought includes approval to a sale
of the property. Existing investors will have a preferential right to invest
in a new syndicate.
The amount of equity proposed to be raised as part of such re-syndication is
approximately $16.5 million, which will be fully underwritten by Augusta
Capital Limited.
In addition, Augusta Capital Limited has entered into the agreement as
guarantor of the existing syndicate's obligations under the agreement. Those
obligations include the landlord's contribution to the development works,
which is capped at $9 million, and a lease incentive payment. This guarantee
was required so that Oji had sufficient comfort to commit to the development.
It is proposed to structure a new syndicate so that it ultimately takes over
the liability for the development from Augusta Capital Limited.
The new syndicate is expected to be established by 31 March 2016.
-ENDS-
For further information please contact:
Mark Francis
Managing Director
End CA:00274178 For:AUG Type:GENERAL Time:2015-11-27 08:30:04
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