News

AUGUSTA KICKS-OFF 2021 WITH LAUNCH OF $109.3m AUGUSTA PENROSE FUND (VISY GLASS)
/ Augusta News

Augusta, now part of ASX-listed Centuria Capital Group (ASX:CNI), is pleased to announce the launch of Augusta Penrose Limited in relation to its $178.3 million acquisition of Visy Glass’s bottle manufacturing and distribution facility - located at 752 Great South Road, Penrose, Auckland. 

Augusta Penrose Limited is one of the largest asset vehicles ever launched by Augusta in the past two decades, offering 109,300,000 shares at $1.00 per share with a minimum starting investment of $50,000 – increasing by $10,000 allotments thereafter.

As set out in the Offer’s product disclosure statement, Augusta Penrose is forecast to provide investors an initial forecast pre-tax cash distribution of 5% per annum (paid monthly), increasing by 25 basis points in the second and third financial periods to reach 5.50% in the financial year ending 31 March 2024, subject to the risks and assumptions contained in the Product Disclosure Statement registered by Augusta Penrose[1].

Mark Francis, Managing Director of Augusta says: “We are delighted to bring investors a rare opportunity to invest in this substantial industrial complex with a 20-year “triple net lease” to a subsidiary of global packaging leader, the Visy Group, located in a prime position in one of New Zealand’s pre-eminent industrial suburbs, Penrose, Auckland.

“We’re conservative in our approach with a focus on quality assets with strong long-term fundamentals. At the core of our investment philosophy is providing sustainable monthly cash distributions and protecting and growing investors’ equity. The Visy Glass Industrial Property’s attributes strongly align with this approach.

“The property has attractive long-term investment and development potential and represents a highly sought-after institutional grade investment opportunity, with fixed annual rental increases and the tenant’s responsibility for all repairs, maintenance and capital expenditure (other than in the event of damage or destruction, for which Augusta Penrose is insured),” says Francis.

Augusta also operates an active secondary market facility, which matches buyers and sellers of shares in existing Augusta funds.

John McBain, Joint CEO of Centuria, adds: “The acquisition of Visy Glass’ bottle manufacturing and distribution facility provides a quality investment opportunity for New Zealand investors while also reflecting our broader strategy to create one of Australasia’s leading real estate funds management platforms.

 “During H1 FY21, we transacted AU$1.5 billion of gross real estate acquisitions across Australia and New Zealand and, following our friendly merger with Augusta, we’ve engaged with a number of our New Zealand-based investors.

 “Despite the uncertainty COVID-19 continues to pose, we remain cautiously optimistic about the opportunities we’re seeing for commercial property across the Australasian market.

 “2021 is set to be another significant year for our sector and we look forward to building our position and bringing more opportunities, like Augusta Penrose, to Kiwi investors – as market conditions allow,” McBain says.

Mark Francis further adds: “We’re expecting strong interest from investors seeking to expand and/ or diversify their portfolio in 2021. Our most recent offer was fully subscribed within two weeks which resulted in many investors missing out.

 “We anticipate a similar, if not, greater level of interest in this asset and would encourage interested investors to move early to read the product disclosure statement carefully and seek independent financial advice before making an investment decision.” 

Please go to www.augustainvestments.co.nz to review the Augusta Penrose Limited product disclosure statement, which contains important information about the Offer.



[1] These cash distributions are not guaranteed. The actual distribution rate may vary. A cash distribution is assumed to be accrued from 27 February 2021, the day immediately following settlement. The increase in distributions over the forecast period does not guarantee further increases. Distributions may continue to increase, remain the same or decrease following the forecast period. Details on how the forecast pre-tax cash distributions are calculated (including the key assumptions upon which they are based), and the risk associated with the investment are set out in the Product Disclosure Statement. The forecast pre-tax cash distributions are based on prospective financial statements prepared by Augusta Penrose in accordance with Financial Reporting Standard 42: Prospective Financial Statements, which are available on the Offer’s register at disclose-register.companiesoffice.govt.nz. The key assumptions on which the forecast pre-tax cash distributions are based include that interest rates are 2.67% per annum until 31 March 2023, increasing to 2.72% from 1 April 2023.  If interest rates are higher in the forecast period than has been assumed then distributions may differ.