Key Points:

A subsidiary of Peter Francis' Augusta Group plans to sell the Finance Centre Podium development in Auckland to listed Kermadec Property Fund (KPF).

KPF's independent directors are recommending the buy to shareholders. The subsidiary, a company associated with KPF's manager, Augusta Funds Management (AFM), is deemed a related party to KPF.

AFM is half owned by Augusta Group. The central-city retail-office property's price is $17.555 million, subject to adjustment, with an initial guaranteed annual net rental yield of 9 per cent on purchase price.