Business

Augusta Capital buys Southgate Centre

14:00 pm on 24 December 2014

Augusta Capital is buying the Southgate Centre in Auckland for $58.5 million and plans to syndicate it.

The property and funds management company will raise $34.5 million from selling units priced at $50,000.

The company's latest purchase was just a little smaller than its last project, the Spark City syndication, which was New Zealand's largest and for which it raised $39 million.

Augusta said the Southgate syndication was fully underwritten and that it had agreed to underwrite $23 million of the capital raising.

The balance of the purchase price would be funded through debt.

It said the centre was a fully occupied shopping centre with tenants, including Briscoes, Repco, Mad Butcher, Subway and Carls Jr.

The property would also include a lease to the anchor tenant, Mitre 10 Mega, which was being varied to provide a 13-year lease with annual inflation-linked rent reviews after the fifth year.

Settlement was scheduled for April 30, and Augusta said it expected to have completed the syndication by then with the offer opening in late February or early March.