KCL price set, Bayleys deal done

The KCL deal will be made up of $10 million in cash and $5 million in Augusta shares.

KCL shareholders will have about 7.1% of the new, larger Augusta group and Bryce Barnett and Phil Hinton will join the Augusta board.

IPT will be bought from real estate group Bayleys for $444,000.

When the deal is done, Augusta will manage about 170 properties and have $1.2 billion in FUM.  It currently has $350 million under management.

Augusta chairman Peter Wilson said in a statement to the NZX: “The move brings additional sources of revenue to Augusta alongside Trans-Tasman expansion opportunities as a result of KCL Property’s Australian business.”

He said Augusta had entered a strategic alliance with Bayleys, under which Bayleys would provide property and facilities management of the property portfolio.

“Due to the significance of this Bayleys alliance, Cheryl Macaulay, the third KCL shareholder, will join Bayleys Real Estate where she will be working to further develop the opportunities represented by this arrangement. The arrangements with Bayleys will see Augusta Capital become exclusive partner for Bayleys for all future funds management initiatives that will cover any new managed property offers to the market.”

He said Augusta would look to offer a range of new property funds to the market on a joint venture basis with Bayleys, leveraging its nationwide network.

“Bayleys will become the exclusive partner to Augusta Capital for the sell-down equity raising for all future syndicated property offers.”