Bank building sold in $50,000 blocks

The 8090 sq m property is entirely leased to ASB. Investors are being offered 340 individual units for $50,000 each through property developers and managers Augusta Funds Management.

Augusta Funds Management managing director Mark Francis said the syndication, entitled 360 Dominion, would be structured in the same format as previous Augusta syndications - as a proportionate ownership scheme where investors had the opportunity to purchase a proportion of the registered freehold title in land and buildings.

"The total purchase price of the property is $26.73million plus GST, and will be funded by a bank debt facility of $11.27million, with the balance through the proportionate investors' equity of $17million,"  Francis said.

"The purchase price includes a lease incentive payable to ASB. A further sum of up to $800,000 may be payable as the vendor seeks to secure additional car parks adjacent to the ASB complex.

"ASB Bank Ltd has agreed to an annual rent roll of $2.162million, with annual rent increases of 2.5 percent annually through to 2024 - starting in July next year.

Francis said the scheme was projected to provide a cash return of nine percent per annum for the first year. The property has been valued at $28.5million by Colliers International New Zealand.

Augusta Funds Management parent company Augusta Capital Limited has agreed to fully underwrite the offer - in effect guaranteeing a complete sell-down of the offering.

Individual purchasers can buy multiple units.

Applications close August 10.