Augusta Capital Ltd settled the sale of the remaining titles at the Finance Centre in Auckland (the podium & carpark) to Heng Yue Ltd (David (Duoyu) Bei) on 21 March, ahead of the agreed settlement date of 1 April.
Augusta sold Augusta House on Victoria St to Heng Yue for $30 million, settled in July 2017, and the retail title to Heng Yue for $25 million a year ago.
The combined purchase price for the final 2 titles was $41 million. Of that, Augusta has applied $15.5 million towards debt repayment and will hold the balance (after sale costs) as cash.
The company’s drawn debt now sits at $10 million. As managing director Mark Francis has signalled, the sale proceeds will provide further balance sheet capability for Augusta’s strategic business objectives, including co-investment in funds, underwriting & holding of property short-term ahead of establishment, diversification or expansion of its managed funds, and investment in other capital initiatives.
In the immediate term, Augusta is using cash held to facilitate its co-investment in the Augusta Industrial Fund equity-raising.
“The settlement represents the final step in the repositioning of Augusta as a property funds manager, rather than a property fund as it was when established,” Mr Francis said.
4 April 2018: Second parcel of Finance Centre sale settles
25 July 2017: Augusta confirms first sale in Finance Centre package settled
25 July 2016: Finance Centre sale confirms Augusta’s full focus on funds management
17 June 2016: Augusta gets new sale agreement on Finance Centre complex
26 October 2015: Finance Centre sale falls through
2 December 2004: Trans Tasman breaks up Finance Centre and sells pieces to Peters & Jones
Attribution: Augusta release.