Augusta Capital, the listed property investor and fund manager, has bought NZME House in Auckland for $115.8 million with plans to bundle the property into a syndication investment offer.
Auckland-based Augusta bought the building from New Zealand property developer Mansons TCLM, with the deal to settle on August 15th, it said in a statement.
The firm will pay for the building through a planned $70 million syndication offer, which will open in May, with the balance funded by debt. The syndication is fully underwritten, of which Augusta will provide a $25 million backstop.
NZME House is tenanted by NZME/APN, Pernod Ricard and Meredith Connell, who occupy five floors. As a pre-condition to settlement, Mansons is looking to find a new tenant on a nine-year lease, and is in talks with potential parties, Augusta said.
Augusta diversified into funds management to generate more income from its property investments, and last month said it reaped $2.7 million in fees from two recent offers.
The shares last traded at $1.09, and have gained 9 percent this year.