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Augusta shareholders want property sales

NZ Newswire logoNZ Newswire 25/07/2016 Edwin Mitson
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Augusta Capital's shareholders have overwhelmingly backed the sale of its Finance Centre properties in central Auckland for $96 million at a special meeting to consider the deal.

Some 58.2 million votes, or 96.23 per cent, were cast in favour. Just 3.77 per cent were against.

Heng Yue Limited, which is controlled by New Zealand resident David (Duoyu) Bei, is buying a total of four sites.

They are Augusta House for $30m, Podium Retail for $25m, the Finance Centre for $11m and the Finance Centre carpark for $30m. Settlement is due to take place in stages between October this year and April, 2019.

A deposit of $9.6m is being offered due to the staggered nature of the deal, with a further deposit of $6.6m due on June 1, 2017.

The board of Augusta told investors that the offer was above the market valuation and the properties were currently in a "very saleable position with key anchor tenants all with strong covenants on long-term leases."

Occupancy is at 97 per cent.

Augusta expects to reap a capital gain of $13.2m on the sale. Proceeds from the sale are to be reinvested in its fund management business.

Shares in Augusta Capital rose 0.9 per cent or 1 cent to $1.12. They've gained 11 per cent since the start of the year.

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