Super-sized commercial syndicate hits Auckland

Augusta Funds Management has established a proportional ownership fund to purchase three hectares of commercial land and buildings in Mount Wellington, worth $25.5 million.

The Augusta syndicate is planning to build 310 individual units, available at $50,000 each. Subscribers may apply for more than one unit.

The syndicate will deliver a proportionate ownership scheme whereby investors are offered the opportunity to purchase a proportion of the registered freehold title in land and buildings.

"The purchase price of the property is $25.5 million, which represents an 8.7% annual rental yield. The purchase price is to be funded by way of approximately 40% of non-recourse prime bank debt and approximately 60% investors' equity," Augusta managing director Mark Francis says.