Business

Augusta to sell Auckland property for $87m

13:41 pm on 13 August 2015

Augusta Capital has agreed to sell the Finance Centre complex in Auckland for $87 million.

The property company said the sale was about 8 percent more than the book value, with settlement expected to take place in late March, subject to shareholder approval, following due diligence by the overseas-based, private investor.

The centre includes the Finance Centre Carpark, Finance Centre Podium, 19 Victoria Street West and the retail title, which houses a Countdown supermarket, Warehouse Stationary, a TAB, restaurants and night club.

Managing director Mark Francis said Augusta would use the proceeds from the sale to re-invest in its funds management business.

The sale follows last month's sale of its City Road property in Auckland for $21.6 million.

Mr Francis said the recent sales would add about $100 million to its war chest, which it will use to expand its holdings in New Zealand and elsewhere.

He said the company already had investments in Queensland and was interested in further expansion in Australia.

Mr Francis said the late settlement on the Finance Centre was intentional, as it would give the company many more months of cash flow from the property.