Centuria NZ Industrial Fund

Centuria NZ Industrial is a limited liability company that was established in April 2018 as an open-ended, unlisted property fund. Its purpose is to provide investors with the opportunity to invest in a portfolio of strategically selected industrial real estate assets that provide both tenant and location diversification within this strongly performing sector of the New Zealand property market. The industrial sector continues to outperform the commercial office and retail sectors, a continuation of the long-term trend we have seen over the past 15 years.

How has the Fund performed?

Centuria NZ Industrial has performed well with an annualised pre-tax total return (cashflow and capital growth) of 15%1 per annum since establishment in 2018. A key long term strategic investment objective for Centuria NZ Industrial is to deliver sustainable and stable income ­­distributions paid to investors monthly, along with the potential for long-term capital growth.

The acquisition of Tidal Road, Columbia Ave and Strong Parts Portfolio will bring the total portfolio to 21 assets (18 located in Auckland, two in Christchurch and one in Wellington) with 52 tenants and an independent valuation of $547.31 million2.

These stats are post settlement of Tidal Road, assumed to be 30 September 2021.

Latest Fund acquisitions

Please be advised three new acquisitions have been secured as detailed below.

The Strong Parts Portfolio (Settled on 30 June 2021)

  • The eight properties in the portfolio are in Central, South and West Auckland and benefit from highly sought after heavy industrial zoning.
  • All properties have new 8-year triple net leases, insulating Centuria NZ Industrial Fund Limited from all repair, maintenance and capital expenditure costs.
  • The leases are to Strong Parts Group Limited, which has recently acquired the Strong Parts business from its previous owners.
  • The Strong Parts business has operated for over 40 years in the car parts industry. The leases have 2.5% annual rental growth, with market reviews at renewal (which cannot go below the rent prior to the renewal date).

62 Columbia Avenue, Christchurch (Settled on 30 July 2021)

  • Well located in one of Christchurch’s premium industrial precincts.
  • Comprised of a modern clear span warehouse with a new 7-year lease (from 30 July 2021) to Value Tyres NZ.
  • Established over 45 years ago, the tenant has been located at this site for 12 years using the property as their head office and main distribution hub.
  • This property also benefits from approximately 10,000sqm of surplus land suitable for future development.

Tidal Road, Auckland (Target settlement date 30 September 2021)

  • Brand new, large scale, architecturally designed, A-Grade industrial facility that is currently under construction in Auckland (with settlement on completion).
  • New 12-year lease from settlement to the well-known beverage distributor Hancocks Wine, Spirit and Beer Merchants Limited for use as their national office and distribution facility. A second smaller warehouse is subject to a 4-year lease to AutoPacific, a market leader in vehicle accessories and towing solutions.
  • Substantial 4.9 hectare property well located in a new industrial business park in one of Auckland’s most central logistics locations, Mangere, and only minutes from State Highway 20 and Auckland airport.

1Calculated from 15 June 2018 to 31 March 2021 based on a $1.00 original issue price, dividends declared during the period and net tangible assets of $1.33 per share as at 31 March 2021.
2Subject to settlement of both the Tidal Road and Columbia Avenue properties, which Augusta Industrial has under contract but does not yet own. All properties other than the Strong Parts portfolio and Columbia Avenue were valued as at 31 March 2021. Tidal Road was valued on an “as if complete” basis. The Strong Parts portfolio was valued as at 15 June 2021 and Columbia Ave was valued as at 20 May 2021.
3The forecast distributions and how they are calculated and the risks associated with this investment are included in the Product Disclosure Statement dated 11 May 2021.
4Rounded down to the nearest whole share.

Past performance is not necessarily indicative of future performance. Returns may vary and are not guaranteed. No applications are currently being accepted for investment in Augusta Industrial Fund Limited and its latest offer has closed. Any indication of interest will not involve an obligation or commitment to acquire a financial product. If any future offer is made, it will be made in accordance with the Financial Markets Conduct Act 2013. Prior to making any investment in the future, prospective investors are recommended to seek professional advice from a Financial Adviser which takes into account their personal circumstances before making an investment decision.

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