Augusta Capital Acquiring NZME House in Auckland for $115.8million

Augusta Capital Acquiring NZME House in Auckland for $115.8million

Augusta Capital, the listed property investor and fund manager said it has bought NZME House in Graham Street in the CBD, Auckland for $115.8 million. It said, it purchased the building from Manson TCLM, a family owned property developer in Auckland. Manson has been into property development in New Zealand for thirty years or more. The deal will be settled on August 15. Augusta Capital plans to bundle the property into a syndication investment.

The firm plans to pay for the deal through an intended $70 million syndication offer that will open this year in May. The remaining amount will be funded by debt. The syndication which is fully underwritten will have $25 million backstop provided by Augusta.

NZME/APN, Meredith Connell and Pernod Ricard are the tenants who occupy the NZME House. They are spread out on the five floors and according to a pre-condition of the deal, Mansons is searching for a new tenant who will agree to a nine-year lease. The company said it is already discussing matters with likely parties interested in tenancy.

The company has diversified its business into funds management in order to generate added income from its investments in properties. Last month, the company said it gained $2.7 million in fees from two of its latest offers.