Market Update – New Zealand
- $60.2m equity raise by Asset Plus Limited (NZX: APL or “Asset Plus”)
- $12.1m placement (“Placement”)
- $48.1m 1 for 1.01 accelerated non-renounceable entitlement offer (“Entitlement Offer”)
- Funding for NZ $120m commercial development with a 15-year pre-commit from Auckland City Council
- Centuria, via Augusta Capital, seeks to increase its Asset Plus holding to 19.99%
- Augusta Capital Limited de-listed from the NZX and acquisition of outstanding securities complete
Centuria Capital Group (ASX: CNI or “Centuria”) reports that Asset Plus is undertaking a $60.2m equity raise through an underwritten Placement and Entitlement Offer. Asset Plus is managed by Augusta Capital Limited.
The equity raise provides funding under the Agreement to Develop and Lease for the 6-8 Munroe Lane, Albany, Auckland project. The development is being undertaken with a substantial pre-commitment from Auckland Council for an initial 15-year lease.
APL shareholders will meet to consider the approval of the Munroe Lane development on Tuesday, 29 September 2020. Centuria Capital, via Augusta Capital, is supportive of the Munroe Lane Development and is seeking to increase its stake in Asset Plus from 18.85% to 19.99% through participation in the equity raise.
John McBain, Centuria Joint CEO, said “Augusta Capital has continued to undertake logical initiatives for platform growth. Following the Augusta Property Fund launch and oversubscribed raise for the NZ$55m Anglesea Medical Centre within Augusta Capital Limited, the Munroe Lane initiative, when complete, will constitute a major asset backed by a long lease commitment to a quality government tenant and is a clear opportunity for the Asset Plus REIT to expand its portfolio through a blend of growth and yield.
“Augusta Capital was recently de-listed from the NZX and the compulsory acquisition of their remaining securities has been completed. We intend to operate the business as a 100% subsidiary and are focused on completing the integration of the business. We are supportive of APL’s Munroe Lane opportunity and continue to work closely with the team to expand Centuria’s presence across the New Zealand market.”