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$50m capital raise for further growth of Centuria NZ Property Fund

One of Australasia’s largest property fund managers is embarking on a second capital raise for a New Zealand property fund established to invest in a strategically selected portfolio of properties.

The Centuria NZ Property Fund (formerly known as the Augusta Property Fund) is intending to raise up to $50 million of capital. It will be used to reduce bank debt to zero to provide the fund with balance sheet capacity for additional acquisitions and to further develop its largest asset, the Anglesea Medical Centre in Hamilton.

Bayleys’ Syndication & Investment Products division is marketing the offering on behalf of Centuria NZ, established out of the merger last year of Augusta Capital and ASX listed Centuria Capital Group. The two longestablished fund managers now have combined Trans-Tasman property assets valued at over NZ$17 billion under management.

Bayleys’ Mike Houlker said units in the Centuria NZ Property Fund are available to all investors in New Zealand with a $10,000 minimum investment. Pre-tax income returns are paid monthly.

‘‘The additional capital that will be generated by this offering to investors will provide a strong platform for the further growth of what is now the Centuria NZ Property Fund.

The fund’s first and highest value asset is the Anglesea Medical Centre which was purchased last year for $55 million and was valued on August 24, 2021, at $59 million. Located on a high profile 2.4ha corner site with three street frontages in Hamilton’s CBD, it is Waikato’s biggest private medical and healthcare complex with 28 tenants.

Bayleys’ Samara Phillips said the current capital raise will provide funding for the development of a two-level building extension of approximately 1500 sqm at the north-western corner of the site for specialist medical service use.

She said building coverage of only about 30 per cent of the total site area means other development opportunities remain which Centuria intends to pursue.

Following the purchase of the Anglesea Medical Centre, the fund also acquired a neighbouring property for $6.446 million. Located at 26 Clarence Street, it has been occupied by the Waikato District Health Board since 2008, with a current six-year lease term from March 2021.

Centuria NZ Property Fund also owns the CityFitness gymnasium premises at 196 Roydvale Avenue, Christchurch which was purchased for $9.3 million at a yield of 6.42%, with the transaction settling last month. It was valued in September by JLL at $10.05 million.

Centuria NZ managing director Mark Francis said the Property Fund’s long-term objective is to provide investors with the opportunity to invest in a portfolio of strategically selected directly owned assets, along with other property related investments, within the one investment vehicle.

‘‘The intention of the fund is to grow over time to continue to increase investors’ exposure to a diversity of property investments whilst providing regular monthly cash distributions and the potential for capital growth.’’

Commercial Property

en-nz

2021-12-01T08:00:00.0000000Z

2021-12-01T08:00:00.0000000Z

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