Augusta Industrial Fund Limited

What is Augusta Industrial?

Augusta 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 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.

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

We are pleased to advise that a new asset, referred to as Tidal Road, has been secured and is detailed below. Augusta Industrial is using this opportunity to seek investment for the purpose of acquiring this new asset with the balance of the proceeds used to repay debt, fund further acquisitions and investment in the existing portfolio and to meet offer costs. The acquisition of Tidal Road will bring the total portfolio to 12 assets (10 located in Auckland, one in Christchurch and one in Wellington) with 50 tenants and an independent valuation of $463.25 million (as at 31 March 2021). Tidal Road is valued on an “as if complete” basis.

New Property – Tidal Road, Auckland

  • 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.
  • 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.

Distributions & Minimum Investment

The pre-tax cash distribution to 31 March 2022 is expected to be 5.0% p.a. for amounts invested in this equity raise*. The minimum investment for this offer will be $10,0001 and in increments of $1,0001 thereafter.

1Rounded down to the nearest whole share.
2Subject to the settlement of the Tidal Road property, which Augusta Industrial does not yet own. The portfolio was independently valued as at 31 March 2021, with Tidal Road valued on an “as if complete” basis. Tidal Road will not be included as an asset in the Industrial Fund’s 31 March 2021 financial statements (when issued).
* Remains subject to independent review of forecasts for the period to 31 March 2022 and final Board approval. The forecast distributions and how they are calculated and the risks associated with this investment will be included in the Product Disclosure Statement once available. The actual distributions could differ from the expected and forecast distributions.
** Calculated 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 (subject to audit).

Augusta Industrial Fund Limited is considering making an offer of financial products in New Zealand. No money is currently being sought. No financial products can currently be applied for or acquired. If the offer is made, it will be made in accordance with the Financial Markets Conduct Act 2013. No indication of interest will involve an obligation or commitment to acquire a financial product. Prospective investors are recommended to seek professional advice from a Financial Adviser which takes into account their personal circumstances before making an investment decision. The selling agents are not providing personalised advice.

1Rounded down to the nearest whole share.
2Subject to the settlement of the Tidal Road property, which Augusta Industrial does not yet own. The portfolio was independently valued as at 31 March 2021, with Tidal Road valued on an “as if complete” basis. Tidal Road will not be included as an asset in the Industrial Fund’s 31 March 2021 financial statements (when issued).

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