Augusta's Aussie syndication

An aerial view of the building complex at 741 Nudgee Rd, Northgate, about 9.5 km from Brisbane CBD. Photo / Supplied

Augusta Funds Management Limited has shifted its syndication focus back across the Tasman with its latest investment offering of a large industrial complex in Brisbane.

It has purchased an 8764sq m building providing a mixture of warehouse, laboratory, cold store and office accommodation on a 1.52ha site at 741 Nudgee Rd, Northgate in Brisbane's Trade Coast region, about 9.5 km north-east of the city's CBD.

The property has a long-term lease, expiring in December 2028, to Health World Limited, one of the largest suppliers of natural medicines and health supplements in Australasia.

The offering of A$50,000 units in a trust that will manage the property is being marketed by Mike Houlker, Samara Philips and Sarah Prebble of Bayleys' syndication division. It is forecast to provide investors with an initial pre-tax income return of 7.35 per cent, increasing to 7.65 per cent in the June 2019 year and 8 per cent the following year.

The latest offering follows Augusta's three previous successful syndications, also marketed by Bayleys, of large office complexes in Auckland. These comprised two buildings in the BDO Centre in the CBD (also NZME's headquarters building) and most recently the offering of 1670 $50,000 interests in Mercury's head office complex under development in Newmarket - Augusta's largest equity raise to date.

The latest Brisbane offering involves a total of 355 units of AU$50,000 which will provide $A17.75 million of equity towards the property's A$28.5 million purchase price. Augusta currently has 12 Brisbane properties under management with a total value of approximately A$111.6 million.

Augusta managing director Mark Francis says Australian properties remain an integral part of the company's investment offerings.

"We see Australian commercial property as a good way for investors to diversify their investment portfolios. Members of Augusta's management team have over 20 years' experience syndicating and managing Australian properties and have built up considerable knowledge of and experience in the Brisbane market and an excellent track record.

"In our opinion, the Queensland industrial property sector continues to experience strong levels of leasing and sales activity which has resulted in falling vacancy rates and rising rentals.

"The properties we manage there are performing well, with the majority showing good capital growth in recent years."

Augusta executive director Bryce Barnett says the Nudgee Rd property trust is Augusta's first Australian registered managed investment scheme, open to investors both sides of the Tasman.