KEY HIGHLIGHTS

• The property is tenanted by Visy Glass Operations (NZ) Limited, a subsidiary of Visy Glass International Pty Limited. The Visy Group is one of the world’s largest privately owned paper, packaging and recycling companies. With 70 years in business, the Visy Group has 5,000 employees and more than 120 sites throughout Australasia, along with trading offices across Asia and Europe.
• The tenant is New Zealand’s only large-scale glass bottle and jar manufacturer, and the tenant (under its previous name(s)) has operated from the site since 1922. The scale of its operation is immense with circa 2 million bottles produced at the site each day.
• The 20 year lease commenced on 25 February 2021 with rights of renewal totalling a further 50 years taking the final expiry through to 2091. The lease is a “triple net lease” (see below).
• A “triple net lease” means Augusta Penrose, as the landlord, is insulated from all liability in relation to the property (other than in the event of damage or destruction, for which Augusta Penrose is insured). For example, any costs of capital expenditure, repair, maintenance and other works whether structural or otherwise are not Augusta Penrose’s responsibility. The lease stipulates the tenant is responsible and has the same liabilities in regards to the premises as if the tenant was the “owner”. This is widely considered the most landlord friendly form of lease.
• The lease features annual rent reviews fixed at 3% per annum providing built in rental growth, increasing rental income annually for the next 20 years.
• Significant size – this substantial 8.576 hectare land holding includes approximately 67,655 square metres of floor area.
• High-profile position directly between Auckland’s Southern Motorway and the main arterial Great South Road, the complex is only 9km from the Auckland CBD and Port. It also benefits from sought–after heavy industrial zoning.
• This combination of size, location and highly desirable zoning bodes well for redevelopment options in the long term.
• “Industrial” is a sought-after property sector in New Zealand which has consistently outperformed other commercial property sectors, and has generated the highest total returns over the past five years.
• Full information including the risks associated with this investment can be found in the Product Disclosure Statement.

*Period commenced on 27 February 2021, the date following settlement of the property.

The distributions are not guaranteed. The actual distribution rates may vary. The increase in distributions over the forecast period does not guarantee further increases. Distributions may continue to increase, remain the same or decrease following the forecast period. Details on how the forecast pre-tax cash distributions are calculated (including the key assumptions upon which they are based), and the risks associated with the investment, can be found in the Product Disclosure Statement registered by Augusta Penrose Limited. The forecast pre-tax cash distributions are based on prospective financial statements prepared by Augusta Penrose in accordance with Financial Reporting Standard 42: Prospective Financial Statements, which is available on the Offer Register. The key assumptions on which the forecast pre-tax cash distributions are based include that interest rates are 2.67% per annum until 31 March 2023, increasing to 2.72% from 1 April 2023. If interest rates are higher in the forecast period than has been assumed then distributions may differ.