Tuesday, 20 February 2018

Announcement

TRANSACT: AUG: ACQUISITION OF INDUSTRIAL PROPERTY / NEW INDUSTRIAL FUND

11 Dec 2017 09:01NZX
NZX RELEASE
11 December 2017

ACQUISITION OF INDUSTRIAL PROPERTY AS SEED FOR INDUSTRIAL FUND

Augusta Capital Limited is pleased to announce it has unconditionally
purchased an industrial property in Seaview, Wellington for a purchase price
of $44.9 million.  It is the company''s intention to initially acquire and
hold the asset on its balance sheet and to then use the property as a seed
asset for a new open ended Industrial Fund. The property is known as The Hub
Industrial Park and is located across various titles at 17 Toop Street, 25
Toop Street, 101-103 and 109-117 Port Road, Seaview, Wellington.

Key highlights of the property are:

o Substantial Industrial Complex on 4.06 hectares of land with a net
lettable area of approximately 32,600 sqm of warehouse and office.
o Major tenants include Peter Baker Transport, Toll Logistics, Downer,
Fujitsu and Jets Transport.
o WALT of 5.7 years.
o Recent earthquake strengthening work completed to bring all buildings
above 70% NBS.
o Purchase price of $44.9 million reflects a 7.46% passing yield
following completion of current works.
o Settlement date for the acquisition is 20 December 2017.
The acquisition of the property by Augusta (ahead of the establishment of the
Industrial Fund) will be funded by a mixture of cash reserves and bank debt
from ASB.

Augusta is also currently investigating and undertaking due diligence on
several Auckland based industrial properties and expects to launch the fund
in the New Year with a mixture of Auckland and Wellington industrial
properties (but with a weighting towards the Auckland market).

The fund is expected to initially raise between $50 and $70 million of
equity.  Augusta Capital will underwrite $35 million of the fund''s initial
equity raising and is working with a consortium of high net worth private
investors to underwrite the balance.

Augusta is excited about the launch of the new fund, which will be its first
open ended unlisted multi-asset fund (as compared to the closed-end Value Add
Fund and Augusta''s single asset funds).   The establishment 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.

Augusta expects the fund''s initial offering to be open by the start of
February 2018 ahead of a settlement for the new fund at the end of March
2018.  A further announcement will be made once this timing is confirmed.

For further information, contact:

Mark Francis     Guy French-Wright
Managing Director    Chief Operating Officer
End CA:00311712 For:AUG    Type:TRANSACT   Time:2017-12-11 09:01:50
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