Tuesday, 20 February 2018


TRANSACT: AUG: Airways re-development - satisfaction of conditions

31 Jan 2018 08:31NZX
31 January 2018

Airways re-development - satisfaction of conditions
Further to the announcement on 22 December 2017 regarding entry into a
development agreement with Airways Corporation of New Zealand Limited and an
existing Augusta managed investment scheme, Augusta is pleased to confirm
that the resource consent, funding and investor approval conditions have now
been satisfied.  The development agreement is now unconditional.

A new single asset fund is being established to raise the required capital
for the re-development, with a product disclosure statement currently being
prepared.  The new single asset fund is expected to be established by 29
March 2018.

The amount of equity proposed to be raised is approximately $22.75 million,
of which Augusta Capital will underwrite $15 million with a third party to
underwrite the balance. The debt and equity funds the purchase of the
property from the existing scheme, establishment costs and an expected
development spend of $19.23 million.

As noted in the 22 December announcement, 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 combination of the above leases provides a WALT on practical completion
of 21.83 years.

Augusta Capital Limited''s guarantee of the development agreement obligations
is released on establishment of the new single asset fund subject to the
required equity and debt being raised.

For further information, contact:

Mark Francis     Guy French-Wright
Managing Director    Chief Operating Officer
End CA:00313585 For:AUG    Type:TRANSACT   Time:2018-01-31 08:31:29
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