Augusta makes major move
Augusta Funds Management has launched what it believes is one of the country’s largest ever public property syndicates for a single building.
The syndicate will seek to raise $70 million, which will be placed into a limited partnership that will own a new six-level Auckland CBD office building.
Media company NZME is the anchor tenant of the 11,117 square metre ‘‘Building A,’’ part of a new, two-building commercial and retail complex at 2-4 Graham St.
The building will be bought from the developer Mansons TCLM for more than $115.8m.
Augusta is selling 1400 investment units of $50,000 each in the limited partnership, and the balance of the purchase price and establishment costs will be funded by a bank loan.
NZME, which owns a number of media outlets including the New Zealand Herald and Newstalk ZB, has a 15-year lease over the first three floors.
Other top tenants include liquor company Pernod Ricard and law firm Meredith Connell.
Augusta’s managing director Mark Francis said a proposal to merge NZME with Fairfax Media’s New Zealand operations would potentially strengthen the tenant covenant.
The proposal is before the Commerce Commission and subject to a number of further regulatory and internal approvals.
Francis said Building A represented an excellent opportunity to acquire a premium-grade office building in the growing Victoria Quarter which would get a further boost from the convention centre development under way nearby.
Augusta Funds Management is a subsidiary of NZX-listed Augusta Capital Limited and has in excess of $1.45 billion of assets under management.