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Augusta nets $2.9m in Akld building deal

NZ NewswireNZ Newswire 7/08/2016

Augusta Capital has reaped $2.9 million in fees from its biggest property syndication deal on the purchase of the NZME Central complex in downtown Auckland.

The property investor and funds management firm will receive a fee of $2.2m for setting up a syndicated offer for the building, which was oversubscribed, it said in a statement.

The firm also received a $750,000 underwriting fee and will continue to generate management fees for the building.

The syndicated offer raised $70m, Augusta's largest, to help fund the $115.8m acquisition of the building, which has a weighted average lease term of 12 years, with tenants including news organisation NZME, Meredith Connell and Pernod Ricard.

Mansons TCLM, who sold the building, is currently leasing a vacant floor and a pre-condition of the sale was for the vendor to find a new long-term tenant.

Augusta shares last traded at $1.08 and have gained 8 per cent so far this year.

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