Investing in industrial property | Stuff.co.nz
In the current environment, the demand for commercial and industrial property investment opportunities continues to increase as kiwis seek better returns.
Centuria NZ (formerly Augusta Funds Management Limited), has been a leader in improving the accessibility of New Zealanders to quality commercial and industrial assets over the past 20 years.
Their successful Augusta Industrial Fund Limited (Augusta Industrial) investment opportunity recently reopened for investment as Augusta Industrial seeks to raise capital to finance the acquisition of a recently secured industrial property. Settlement of this asset will see Augusta Industrial’s portfolio grow to 12 strategically selected industrial assets; 10 located in Auckland and one in each of Wellington and Christchurch. The investment provides a diversified income stream from 50 tenants, including global and multinational names such as Toll, Downer, Linfox, Repco and Fletcher Steel.
Mark Francis, CEO of Centuria NZ, says investors can participate in the current opportunity with as little as $ 10,000 (rounded to the nearest whole share). The shares acquired under this offering are expected to provide investors with a pre-tax cash distribution of 5% per annum for the financial period ending March 31, 2022, which is expected to be paid monthly, as well as the potential for capital growth. . *
Investors are offered the opportunity to purchase shares of Augusta Industrial Fund Limited, which provides the opportunity to invest in a portfolio of strategically selected properties offering both tenant diversification and locations in the high performing industrial sector. of the New Zealand real estate market.
Francis says previous investors have benefited from capital growth already, with Augusta Industrial producing an annual pre-tax total return of 15% per annum, comprised of cash distributions and capital growth, since its inception in 2018. **
Centuria NZ, which has around NZ $ 2.2 billion in assets under management, is cautious in its approach to shared ownership structures. “At the heart of our investment philosophy, we offer sustainable and stable monthly cash distributions and the protection and growth of investors’ equity. Augusta Industrial’s long-term strategic goals align strongly with this approach.
As mentioned above, one of the main objectives of Augusta Industrial’s third capital increase is to acquire a brand new A-grade large-scale industrial and architectural design facility which is currently under construction in Auckland. Francis says that “the most recent addition to Augusta Industrial has already seen its valuation of over $ 6 million (on a ‘as if full’ basis) since we signed a contract to purchase it last year.”
The offering is marketed by Bayleys’ syndication and investment products team of Mike Houlker, Samara Phillips, Sarah Prebble and Shirley Leung.
Houlker says the offering gives all levels of investors exposure to the industrial property sector which continues to outperform the commercial office and retail sectors, a continuation of the long-term trend we have seen in the past. over the past 15 years.
“There is a wide range of investors who have participated in Augusta Industrial’s previous fundraisers, ranging from those with a minimum investment of $ 10,000 to high net worth individuals with an investment of $ 5 million.”
“In keeping with the industrial property industry as a whole, Augusta Industrial has seen strong investor demand. Augusta Industrial’s initial and subsequent fundraising totaled $ 190 million and both were oversubscribed. , many investors having missed the blow. “
Cameron Bagrie is a leading economist with over 20 years of experience, including 11 years as Chief Economist at ANZ Bank. Bagrie says he expects investors to look to the commercial and industrial property sectors now that residential property has drawn the wrath of the government and the Reserve Bank.
“Low deposit rates continue to generate strong interest in high-quality, income-producing investments,” Bagrie says. As noted in the May Reserve Bank Financial Stability Report, strong demand and low levels of new supply have supported industrial property values, with vacancy rates remaining near all-time lows of around three percent “.
Bagrie says he agrees with the Reserve Bank’s comments that these favorable conditions in the industrial property sector should continue. “It should also be noted that tax deductions for depreciation of commercial and industrial buildings were reinstated in 2020, which is a benefit for investors.”
Centuria NZ’s sole shareholder, Centuria Capital (NZ) No.1 Limited, is Augusta Industrial’s key investor, which means their interests are aligned with those of other shareholders. Centuria Capital (NZ) No.1 Limited has made a firm commitment to subscribe to $ 8 million in shares in the offering, which will maintain its 10% stake in Augusta Industrial if the $ 80 million target is lifted .
Presentations will be held across the country in late May and June to showcase the offer.
For a copy of the product disclosure statement for this offering, presentation details and more information, visit www.augustaindustrialfund.co.nz.
* Forecast of the pre-tax cash distribution per year for the shares acquired under this offer. Details of how the expected pre-tax cash distribution and the risks associated with this investment are calculated can be found in the product disclosure statement at www.augustaindustrialfund.co.nz.
** Calculated from June 15, 2018 to March 31, 2021 based on an initial issue price of $ 1.00, dividends declared during the period and net property, plant and equipment of $ 1.33 per share as of March 31, 2021.
Augusta Industrial Fund Limited is the issuer of the shares to be issued under the offer to which this announcement relates. A product disclosure statement for the offer, which sets out the terms and conditions of the offer, is available and can be obtained by contacting the Bayleys real estate agents listed in this ad. Nothing in this advertisement constitutes an invitation to subscribe or offer shares, securities or financial products to any person, in any country, in which it would be illegal to do so. Terms used in this advertisement have the same meanings as defined in the product disclosure statement, unless the context indicates otherwise. It is recommended that potential investors seek the advice of a financial advisor, who takes their personal circumstances into account before making an investment decision. Sales agents do not provide personalized advice