Augusta Capital Ltd has decided to withdraw the initial offering of the Augusta Property Fund.
The decision comes a day after Augusta managing director Mark Francis announced that the proposed takeover of the company by Australian investment manager Centuria Capital Group had fallen through.
Company chair Paul Duffy & managing director Mark Francis said today: “The decision was made in light of the Covid-19 lockdown & the effect of this lockdown on a number of the tenants in the Augusta Property Fund’s initial properties.
“As a result of that lockdown, rental relief is likely to either apply or be sought by tenants and the Augusta board considered that the representations made in the fund’s product disclosure statement were no longer correct.
“All money raised will be returned to registered investors in the next week.
“Discussions are ongoing with the vendors of the relevant properties with a view to relaunching the fund at a later date.
“As a result of the withdrawal, Augusta will not recognise any fees from the establishment of the Augusta Property Fund during the 2020 financial year. The earnings guidance previously released on 17 February is withdrawn.”
As a result of the lockdown, construction work has ceased at the Radisson Collection Hotel development at Man St, Queenstown and Jucy Snooze on Cook St, Auckland.
27 March 2020: Centuria ends Augusta bid
Attribution: Company release.