Augusta Capital Ltd made 3 related investment announcements yesterday:
- It’s signed an agreement for Radisson Hotel Group to manage its first Queenstown hotel for an initial 15-year term
- This will enable Augusta to launch its Tourism Fund in 2020, probably in the first quarter
- Separately, Augusta expects to launch a new diversified fund in November.
Augusta bought the central Queenstown hotel site at 17-19 Man St last November. Managing director Mark Francis said yesterday the hotel would be the first in the Radisson Collection in New Zealand, and one of 2 initial seed assets for the Augusta Tourism Fund. The other is 54 Cook St at the corner of Nelson St on the fringe of the Auckland cbd, which is being converted from office to a pod hotel for Jucy Snooze Ltd.
Mr Francis said the target date for opening the Radisson Collection Hotel Queenstown, as a lowrise boutique luxury hotel, was early 2022. Radisson has over 1400 hotels operating under 7 brands or under development around the world.
Tourism Fund to launch in 2020
He said the open-ended, unlisted Augusta Tourism Fund would offer investors a unique opportunity to play a part in building New Zealand’s tourism infrastructure: “Tourism is of critical importance to the New Zealand economy, and investment in infrastructure is essential in harnessing the benefits of growth. The establishment of the Augusta Tourism Fund represents Augusta’s confidence in the strong performance of the sector, as well as forecasted future growth.
“We’re excited to be offering our investors the chance to invest directly into commercial tourism infrastructure for the first time, as well as into the future of the sector in New Zealand. Our vision is to be New Zealand’s most diverse institutional-grade property funds management business across multiple sectors and the Tourism Fund is a key part of this strategy.
“Augusta is also currently the preferred partner for the Queenstown Lakeview development in partnership with Australian based Ninety-Four Feet. Should negotiations with Queenstown District Council be successful, this project may provide opportunities for the Tourism Fund in the medium to long term.”
One fund to launch in November, another pushed back
Alongside the Tourism Fund, Mr Francis said Augusta remained focused on building strong pipelines for growth & the launch of other funds.
The Albany Lifestyle Centre will be the seed asset for the new diversified fund, to be launched in November with the objective of providing investors with a stable monthly income stream.
A retail fund launch is now a longer-term proposition.
24 May 2019: Augusta buys Albany Lifestyle Centre from Argosy for new fund
8 April 2019: Augusta & Britomart join 94 Feet in Queenstown development bid success
3 December 2018: Augusta buys Queenstown site for second tourism fund hotel
31 October 2018: Augusta to settle Cook St deal today
23 October 2018: Fund shareholders approve sale to initiate Augusta tourism fund
24 September 2018: Pod hotel the opportunity for Augusta to close value-add fund with strong return and open tourism fund
Attribution: Company release.