NZX RELEASE
22 December 2017
Development of new building for Airways in Christchurch
Augusta Capital Limited is pleased to announce that it has entered into a
development agreement with Airways Corporation of New Zealand Limited and the
existing Augusta managed syndicate that owns Airways'' Christchurch premises.
The agreement provides for the development of a new "Importance Level 4"
building which will house part of Airways new air traffic management
platform. In return, Airways is committing to:
o an extended 25 year lease term on the new building and two of the
existing buildings (effective from practical completion which is expected to
occur in mid-2019); and
o a 9 year lease term on the remaining building (which commences at a
date elected by Airways between 12 and 18 months after practical completion)
The agreement is conditional on receipt of a resource consent, approved
funding terms and the approval of the investors in the existing syndicate
which owns the property. These conditions are due to be satisfied by 30
January 2018.
In order to fund the landlord''s development obligations, 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 $22.75 million, of which Augusta Capital Limited will
underwrite $15 million with a third party to underwrite the balance.
In addition, Augusta Capital Limited has entered into the agreement as
guarantor of the existing syndicate''s obligations under the agreement. This
guarantee is released on establishment of the new syndicate subject to the
required equity and debt being raised by the new syndicate.
The new syndicate is expected to be established by 29 March 2018.
For further information, contact:
Mark Francis Guy French-Wright
Managing Director Chief Operating Officer
End CA:00312422 For:AUG Type:TRANSACT Time:2017-12-22 11:12:23