Augusta Industrial Fund continues to grow its portfolio

NZX RELEASE 7 December 2018 Augusta Industrial Fund continues to grow its portfolio Augusta Capital ('Augusta') is pleased to announce that the Augusta Industrial Fund has agreed to purchase one Christchurch and four Auckland industrial properties for a total price of approximately $174 million. Once the acquisitions are completed, the gross asset value of Augusta Industrial Fund will increase to approximately $294 million. The four Auckland industrial properties are owned by existing Augusta managed syndicates who have each voted today to approve a sale to the Augusta Industrial Fund. The Christchurch property is known as the Castle Rock Business Park and comprises 13 buildings leased to 16 tenants on one title. The acquisitions of the Auckland and Christchurch properties are consistent with the Industrial Fund's strategy to firstly deliver sustainable and stable returns through both tenant and location diversification, and secondly, to grow the Fund's gross asset base over the next 2-3 years with a view to a possible NZX Main Board listing in time. The growth in Augusta Industrial Fund also further evidences the execution of Augusta's strategy to develop and grow a range of multi asset property funds in order to be New Zealand's most diverse and respected institutional grade funds management business across multiple sectors in both listed and unlisted platforms. In order to fund the acquisitions, the Industrial Fund will undertake a second capital raise, with approximately $110 million to be raised. A product disclosure statement is being prepared and at this stage is expected to be registered in late January 2019. A further announcement regarding Augusta Industrial Fund's capital raise will be made once this timing has been confirmed. Settlement is at this stage expected to occur for all five properties on 28 March 2019. Augusta holds a 10% stake in the Industrial Fund and will invest further equity in the capital raising to maintain this holding. As the manager of the Industrial Fund, it will receive a 1% acquisition fee in connection with the acquisition, which will be paid on settlement. Augusta will also underwrite a portion of the equity raising with the amount to be confirmed once discussions with other underwriters have been concluded. -ENDS- For further information, contact: Paul Duffy Mark Francis Chairman Managing Director End CA:00328072 For:AUG Type:TRANSACT Time:2018-12-07 15:50:00