Centuria Capital has announced that it will fully underwrite its’ NZ Subsidiary Augusta Capital launch of a new NZ single asset unlisted
fund to acquire the Visy glass facility in Auckland.
The Fund will spend NZ$178.3 million (excluding costs) on the acquisition of the 752 Great South Road, Penrose, Auckland, via a sale and leaseback, underpinned by a 20-year triple net lease to Visy. The acquisition reflects a passing yield of 4.5%.
The acquisition is the largest single asset unlisted fund launched by the Centuria Group to date and is a good example of the type of transformative transaction Augusta Capital can contemplate with the support of the Centuria balance sheet. As a result of the acquisition, Centuria’s assets under management increase to approximately $10.0 billion.
No further details have been provided about the transaction or the unlisted fund that Augusta intends to raise capital for.
The Visy plant is run by glass manufacturing business of Owens Illinois, which Visy acquired in July 2020 in a deal worth almost A$1 billion.
John McBain, Joint CEO of Centuria, said “The Visy acquisition in New Zealand follows the recent $417million acquisition of Telstra’s data centre in Victoria and Centuria is pleased to partner both groups in these initiatives. Centuria has upgraded both its operating EPS guidance and DPS guidance following strong property funds management activity to date in FY21, with a meaningful proportion of these earnings generated from our New Zealand business unit underpinning our ongoing confidence in this acquisition.”
Jason Huljich, Joint CEO of Centuria, said “We are very pleased with the momentum of our New Zealand business since the acquisition of Augusta Capital. To date in FY21, Centuria has successfully added $0.9billion in AUM with a further $0.3 billion in assets under due diligence.”
“I am proud of the team’s ability to originate new opportunities such as these sale and leaseback transactions and the acquisition of the Visy Facility along with its associated 20 year triple net lease, which strengthens our relationship with Visy – one of our real estate platform’s largest tenants.”
To support the Centuria underwriting of the transaction, Centuria announces a fully underwritten $100.0 million equity raising that will comprise:
- A 1 for 15 accelerated non-renounceable pro rata Entitlement Offer to raise $80.5 million; which includes;
- An institutional entitlement offer, where offers have been made to qualifying institutional securityholders for them to apply for their pro-rata entitlement (the Institutional Entitlement Offer); and
- A retail entitlement offer, where offers will be made to qualifying retail securityholders for them to apply for their pro-rata entitlement (the Retail Entitlement Offer); and
- An institutional placement to raise $19.5 million
The equity raising repositions Centuria’s balance sheet through the repayment of debt and provides funding flexibility to execute new transaction opportunities including the underwriting of a new single asset unlisted fund which will acquire the Visy Facility.
Centuria will have approximately $105 million of working capital available post the Equity Raising while pro forma operating gearing will be approximately 2.5%.
Moelis Australia Advisory Pty Ltd is acting as underwriter and sole lead manager to the Equity Raising. Shaw and Partners is acting as co-lead manager to the Equity Raising.
As a direct consequence of a strong first half year performance from property funds management operations in Australia and New Zealand, Centuria Capital announces the following guidance upgrade:
• FY21 operating EPS guidance increased to 11.5 –12.5 cents per security (up 9.1% from previous guidance)
• FY21 DPS guidance increased to 9.0 cents per security (up 5.9% from previous guidance)
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752 Great South Road, Penrose, Auckland
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