AUGUSTA ACQUIRES QUEENSTOWN LAND FOR HOTEL DEVELOPMENT

NZX RELEASE 26 November 2018 AUGUSTA ACQUIRES QUEENSTOWN LAND FOR HOTEL DEVELOPMENT Augusta Capital is pleased to announce that it has entered into an unconditional agreement to acquire land in the Queenstown CBD for a 5-star hotel development. The land is located at 17-19 Man Street, Queenstown which sits immediately above the Queenstown CBD on route to the Queenstown gondola and provides outstanding views out to the Remarkables. Mark Francis, Managing Director of Augusta Capital said: "Locations for a hotel development in Queenstown do not come much better than this site. The location is central Queenstown within walking distance of all the key sights and activities in the Queenstown CBD while sitting in an elevated position which provides premium, uninterrupted views out to the Remarkables." Resource consent has been obtained by the vendor to undertake the proposed hotel development which has been progressed to a level of detailed design. Augusta is also progressing discussions with potential hotel operators for the site with a number expressing interest to date. Initial discussions have also been held with potential contractors regarding construction of the hotel but a construction contract will not be let until a hotel operator is secured. It is expected that construction should commence by the middle of 2019. The total consideration payable under the agreement is $13.95 million for the land as well as the designs, intellectual property and site works undertaken to date. Settlement of the transaction is expected to occur prior to 30 November 2018. The property will be held by Augusta ahead of being transferred to the proposed Tourism Fund upon its establishment. Augusta may progress the development prior to establishment of the Tourism Fund. -ENDS- For further information, contact: Mark Francis Managing Director End CA:00327348 For:AUG Type:TRANSACT Time:2018-11-26 08:30:57