Offer Open date: 29 March 2018
Manager: Centuria NZ (formerly known as Augusta Funds Management Limited)
This offer provided the opportunity to invest in a substantial office complex with a new 25 year lease to the State Owned Enterprise tenant Airways Corporation on the majority of the property with built in rental growth. The SOE provides air traffic control and infrastructure across 30 million square kilometres of airspace in New Zealand and over the Pacific.
The long term lease was agreed in conjunction with a brand new high specification building to be constructed on the site. A further separately titled property was leased for nine years providing an impressive weighted average lease term of 21.83 years.
The forecast pre-tax cash return was 7%p.a.* for the first two full financial years and the offer raised $22.75m of investors equity comprised of 455 $50,000 units.
With a government owned tenant, the length of lease security and the rental growth provisions, the demand for this offer was unprecedented. The offer closed oversubscribed with numerous enquiries still being received after the closing date.