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Augusta buying NZME House in Auckland

NZN 17/04/2016

Listed property investor and fund manager Augusta Capital has bought NZME House in Auckland for $115.8 million with plans to bundle the property into a syndication investment offer.

The Auckland-based company bought the building from New Zealand property developer Mansons TCLM, with the deal to settle on August 15, it says in a statement.

The firm will pay for the building through a planned $70m syndication offer, which will open in May, with the balance funded by debt.

The syndication is fully underwritten, of which Augusta will provide a $25m backstop.

NZME House is tenanted by NZME/APN, Pernod Ricard and Meredith Connell, who occupy five floors.

As a pre-condition to settlement, Mansons is looking to find a new tenant on a nine-year lease, and is in talks with potential parties, Augusta said.

Augusta diversified into funds management to generate more income from its property investments, and last month said it reaped $2.7 million in fees from two recent offers.

The shares last traded at $1.09, and have gained 9 per cent this year.

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