Thursday 31st March 2016 |
Text too small? |
Augusta Capital says it generated fees totalling $2.7 million after successfully completing separate syndication and property fund offers.
The Auckland-based company's $17 million syndicate to buy and redevelop Oji Fibre Solutions' Penrose premises was fully subscribed, meaning Augusta didn't need to take up any underwritten amount, it said in a statement. Separately, it closed a $60 million offer for Augusta Value Add Fund No 1, housing property assets worth $112 million, taking up $9.51 million. Augusta plans to onsell $3.51 million of that stake to investors who hadn't been able to meet the April 1 settlement date, due to anti-money laundering due diligence or being unable to transfer funds.
Augusta receives offeror and underwriting fees of about $1.4 million from the Oji syndication deal, plus a further $300,000 project management fee payable once the site is developed, while the fees generated from the Value Add fund's offer and underwrite amount to almost $1.4 million. Augusta will also attract an annual management fee of 1.25 percent from the fund, worth $1.4 million at the fund's current assets, reducing by 25 basis points on the sale of each property, with a base management fee of $400,000, plus a performance fee of 20 percent when the pre-tax internal rate of return beats an annual 8 percent.
Funds management generated net revenue of about $4.6 million in Augusta's first half, ahead of the $3.3 million from investment property. The company diversified into funds management away from pure property ownership as a means to generate more income from its investments.
The shares rose 1 percent to $1.04 and have gained 3 percent this year.
(BusinessDesk)
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes