15 Jun 2016

Augusta Capital sells Akl Finance Centre for $96m

12:49 pm on 15 June 2016

Listed commercial property investor Augusta Capital is selling its Auckland Finance Centre for a total of $96 million.

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Photo: 123rf.com

The prime central city site is to be sold as four separate properties, which will be settled over the next three years.

Augusta House office block will be sold for $30 million and settled this October.

The other properties on the site are a retail development for $25 million, a carpark for $30 million and an office podium development for $11 million, which will be progressively settled through 2018 and 2019.

The company will spend $1.1 million on capital work on the properties. It said the sale price is close to 4 percent above the current book value of the property.

Augusta said it will re-invest the proceeds of the sale into its funds management business, and the staged nature of the sale will give it a continuing stream of income.

A special shareholder meeting will be held to approve the sale.

The company is changing from a property investor into a funds manager, which acquires a property and then syndicates it to a group of investors.

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