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Augusta purchases a new supermarket for the Cash Faktor Syndicate

Augusta has just signed a purchase contract for a new supermarket in Bad Driburg, Germany which was purchased with spare funds in the Cash Faktor Syndicate.  This supermarket, located near Paderborn, is 1015m² and has a lease of 15 years.  It will most certainly add to the asset value of Cash Faktor which was incorporated in 2009 and is already performing very well. 

Rising Returns for German Commercial Property according to the latest IPD Index launch!

The IPD German Annual Property Index has just been launched!  German commercial property has posted a strong total return for 2010, at 4.2%, the highest since December 2007, a clear improvement on 2009's 2.4%.

The index results comprised of 57 funds with 4281 assets worth €46 billion.  Dr Daniel Piazolo, Managing Director of IPD Germany explained ' After two years of negative movements, the recovery in the German property market matches the positive returns posted by other IPD indices.  While total return in the UK and the USA has been higher - at 15.2% and 14.2% respectively - the downturn in Germany was much less severe, therefore there was less rebound to follow....'

IPD Germany Annual Property Index 2010

Uplift in UK valuations

We have just received very positive valuations for our UK syndicates, the First UK Commercial Property Fund and the Second UK Commercial Property fund for the year end of 2010.    Valuers are more optimistic this year in general about UK commercial property which delivered a 14.5% total return last year, the strongest return for four years.

Both of these funds had suffered from big write-downs in 2008 due to the economic crisis.  The last two years have witnessed a slow recovery which, given that sterling has plenty of room to strengthen over the coming months,  is an encouraging sign for both of these syndicates in the years ahead of exit. 

The First fund in particular has received a great boost to share value with the Car Park in Hockley up 24% on last year.   The Valuers were more optimistic this year about this property taking into account the 20 years remaining on the 25 year lease of Signet jewelers a FTSE 250 company. The Retail warehouse in Sudbury is also up by 15.5%

The Second UK Commercial Fund also received a boost to share value, albeit more modest in nature, with the Car showroom in Romford up by 12.2 % and the retail warehouse in Bolton up by 15.8%. 

New Linkedin Group for Investors!

We would like to invite all our investors to join us on linkedin! We have just created a new group called ‘Augusta Investors’ on linkedin. The purpose of the group is to keep you updated with all syndicate development as well as introducing to new investment opportunities.

In addition to this, LinkedIn will provide an excellent way of keeping in touch with the Directors of Augusta.  Many of you have connected with our Directors in recent months and thus we created a group to enhance this communication process. 

This group is open to all Augusta investors.  Please bear in mind that by joining this group you are identifying yourself as an investor in Augusta.  We welcome your thoughts and discussions on our existing and new investment offerings.  Also please note that this group is not listed in the groups directory.

If you are an investor and would like to join the group please use the link below to join the group.  Or you can an email to rg@augusta.ie and we will send you on the link to join.

Augusta Investors Linkedin Group

Update on German portfolio

 

We have just received our end of year property valuations for our German portfolio which indicate a 4.5% increase in property value since the date of purchase.   In the context of the overall performance of German property, we are pleased with the increase.   The most recent IPD German annual Property index indicated a 2% overall total return in the office sector of property investments.  Current share valuations for the German portfolio, which are completed monthly are also on a steady and rising trend .

Our policy to purchase assets where there is latent asset management potential, we believe, has contributed largely to this rise in valuation, year on year.  Forecasts are for continued steady economic growth in Germany in 2011 and we look forward to an uplift in the real estate market which will continue to have a positive effect on the valuations of the German portfolio. Our policy to purchase assets where there is latent asset management potential , we believe, has contributed largely to this rise in valuation, year on year.  Forecasts are for continued steady economic growth in Germany in 2011 and we look forward to an uplift in the real estate market which will continue to have a positive effect on the valuations of the German portfolio.

New anchor tenant for Wiesbaden

As part of the ongoing lease improvement strategy in Wiesbaden, the Directors are delighted to have signed European clothing retailer Bonprix to the Wiesbaden property. The c. 400 sqm unit is currently being fitted out and retail operations will begin shortly. The new 10-year lease is at very attractive rental levels and matches the directors' expectations for the income-generating potential of this asset.

New asset purchased for €6.4 million!

We are delighted to announce the purchase of a new €6.4 million DIY store located in Salzkotten, a suburb of Paderborn, located between Duesseldorf and Hannover.  This asset, built in 2008 and located in a very busy micro location, boasts a high covenant tenant with a 9% yield and long lease terms.  Purchased for the Cash Faktor syndicate, the Directors are very pleased with the terms and suitability of this investment.

3rd Augusta Syndicate - extension of lease

Good news for the 3rd Augusta syndicate - the pharmacy, a principle tenant in Schoenstrasse 5-7 Weissensee, has extended their lease from 2012 to run right through to 2020.  

5th Augusta Syndicate - extension of lease for principle tenant!

The Fitness Centre, Pfitzenmeier, in Mannheim has waived a number of break clauses to bring their tenancy forward to 2016 and in addition have consolidated two leases into one, making their tenancy considerably more solid and reliable.

More Good Economic News from Germany

  • German exports increased by 9.2% and imports by 14.8% in the month of May 2010;

 

  • Exports up by 28.8% and imports up by 34.3% compared with May 2009

 

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