Mansons sell Telecom HQ building

03:53, Jun 16 2014
Telecom headquarters Auckland
VICTORIA QUARTER: The buildings opened in 2010 and offer green-rated, modern office space.

The Manson family is selling one of the buildings in Telecom's headquarters to property syndicator Augusta Funds Management for $65 million.

The lease for Building C, Telecom Place, 167 Victoria St in Auckland is being varied to provide a 10-year lease to Telecom New Zealand until 31 May 2024 with the rent during the term increased annually by 3 per cent.

Augusta intends to offer the property to the market by way of syndication before the scheduled October 1 settlement date. The offer will require $39m of investor equity to be raised in units of $50,000 each.

The offer is fully underwritten, with Augusta Capital agreeing to underwrite $25m of the required $39m. The balance is being funded through new debt facilities. The offer is expected to open in mid-July.