Augusta shareholders back Finance Centre sale
Some 58,239,157 votes or 96.23% were cast in favour.
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Hawke’s Bay
At a special meeting to discuss the deal, Augusta Capital's [NZX: AUG] shareholders have overwhelmingly backed the sale of its Finance Centre properties in central Auckland for $96 million.
Some 58,239,157 votes or 96.23% were cast in favour. Some 2,281,802 or 3.77% of votes were against.
Heng Yue Ltd, which is controlled by New Zealand resident David (Duoyu) Bei, is buying a total of four sites. They are Augusta House for $30 million, Podium Retail for $25 million, the Finance Centre for $11 million and the Finance Centre carpark for $30 million. The settlement is due to take place in stages between October 1, 2016 and April 1, 2019.
A deposit of $9.6 million is being offered due to the staggered nature of the deal, with a further deposit of $6.6 million due on June 1, 2017.
The board of Augusta told investors that the offer was above the market valuation and the properties were currently in a "very saleable position with key anchor tenants all with strong covenants on long-term leases." Occupancy is at 97%.
Augusta expects to reap a capital gain of $13.2 million on the sale. Proceeds from the sale are to be reinvested in its fund management business.
Shares in Augusta Capital rose 0.9% or 1c to $1.12. They've gained 11% since the start of the year.
(BusinessDesk)
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Edwin Mitson
Mon, 25 Jul 2016
Mon, 25 Jul 2016
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Augusta shareholders back Finance Centre sale
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