Augusta’s Latest Investment Opportunity
Offer Open
Offer Open
Augusta Penrose Limited is proud to bring investors the opportunity to invest in this substantial 8.576ha industrial complex with a 20-year ‘triple net’ lease (see explanation below) and 3% annual rental growth* to global packaging leader Visy. Well located in a prime position in one of New Zealand’s Pre-eminent industrial suburbs, Penrose, Auckland, the property is a sought-after institutional grade investment opportunity within the industrial property sector.
The investment is in ordinary shares in Augusta Penrose Limited, a company established by Augusta Funds Management Limited to acquire and own the Visy Glass Industrial Property.
*Following the initial 20-year lease term rent reviews on renewal are to market.
*Period commences on 27 February 2021, the date following settlement of the property.
The distributions are not guaranteed. The actual distribution rates may vary. 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 risks associated with the investment, are set out in the Product Disclosure Statement registered by Augusta Penrose Limited. 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 is available on the Offer Register. 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.
The property is tenanted by Visy Glass Operations (NZ) Limited, a subsidiary of Visy Glass International Pty Limited. The Visy Group is one of the world’s largest privately owned paper, packaging and recycling companies*. With 70 years in business, the Visy Group has 5,000 employees and more than 120 sites throughout Australasia, along with trading offices across Asia and Europe.
The tenant is New Zealand’s only large-scale glass bottle and jar manufacturer, and the tenant (under its previous name(s)) has operated from the site since 1922. The scale of its operation is immense with circa 2 million bottles produced at the site each day.
*Visy Glass Packaging Services Pty Limited guarantees the Tenant’s obligations under the lease. No other member of the Visy Group guarantees the Tenant’s obligations under the Lease.
Other highlights
- Significant size - this substantial 8.576 hectare land holding includes approximately 67,655 square metres of floor area.
- High-profile position directly between Auckland’s Southern Motorway and the main arterial Great South Road, the complex is only 9km from the CBD and Port. It also benefits from sought–after heavy industrial zoning.
- This combination of size, location and highly desirable zoning bodes well for redevelopment options in the long term.
- Offer fully underwritten.
- Full information including the risks associated with the investment can be found in the Product Disclosure Statement.
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The lease is a “triple net lease”. This means Augusta Penrose (the entity that investors invest in) as the landlord is insulated from all liability in relation to the property (other than in the event of damage or destruction, for which Augusta Penrose is insured). For example, any costs of capital expenditure, repair, maintenance and other works whether structural or otherwise are not Augusta Penrose’s responsibility. The lease stipulates the tenant is responsible and has the same liabilities in regards to the premises as if the tenant was the “owner”. This is widely considered the most landlord friendly form of lease.
For a copy of the Product Disclosure Statement and to RSVP to a presentation near you, please contact the below selling agents or visit www.augustainvestments.co.nz for more information.
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Mike Houlker LICENSED UNDER THE REA ACT 2008 |
Samara Phillips LICENSED UNDER THE REA ACT 2008 |
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Sarah Prebble LICENSED UNDER THE REA ACT 2008 |
Shirley Leung LICENSED UNDER THE REA ACT 2008 |
You can also email queries through to the team at Augusta via enquiries@augusta.co.nz or phone Adelle McBeth 021 755 293.