Sale of Auckland Finance Centre falls through

3:28 pm on 23 October 2015

A deal to sell Augusta Capital's Auckland Finance Centre for $87 million has fallen through, but the property company says it is not planning to put it back on the market.

Augusta announced in August that it had a conditional agreement to sell the building complex, in Downtown Auckland, to an unnamed overseas buyer, but says the due diligence condition has not been satisfied and the buyer has backed out of the agreement.

The centre includes the Finance Centre Carpark, Finance Centre Podium, 19 Victoria Street West and the Retail Title, which houses a Countdown supermarket and other tenants, including a Warehouse Stationary, TAB, restaurants and a nightclub.

Augusta managing director Mark Francis said the sale fell through over a technical matter, and didn't have anything to do with the price, the yield generated by the property, or the condition of the building.

"We'll pick up the valuation uplift, which has occurred over this process", he said.

"And that asset valuation came in significantly higher than where we were carrying it on our books. So it hasn't been an all bad exercise for us, but not the outcome we expected."

He said the new value would be disclosed when the company reported its first half result for the period ended in September, which would be more than the $80 million book value, but less than the $87 million sale price.

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