NZX/ASX Announcement - Sale of Federal Street Car Park
SKYCITY Entertainment Group Limited (“SKYCITY”) has today announced that it has signed an unconditional agreement to sell the Federal Street car park, in Auckland, for $40 million to ICD Property Investment Limited (“ICD”). The Federal Street car park is a 427 space car park proximate to the SKYCITY Auckland casino, hotel and hospitality precinct.
ICD was selected as the preferred purchaser following a competitive tender process managed by Colliers, and signed a conditional agreement in late April 2018. The conditions of this agreement have now been satisfied.
The key terms of the sale agreement with ICD are:
• Purchase price: $40 million (cf. book value of $22 million)
• Deposit: 10% of the purchase price
• Settlement: 12 months from the date of the sale agreement (i.e. late April 2019)
The sale of the Federal Street car park is consistent with SKYCITY’s intention to move to an “asset-lighter” strategy which includes looking to divest non-core assets and businesses. The proceeds of the sale will be used, initially, to pay down debt and then fund future growth opportunities as they arise.
The car park is currently occupied by SKYCITY staff that will be moved to the New Zealand International Convention Centre (“NZICC”) car park when the first tranche (~600 spaces) is completed. Following this, SKYCITY intends to operate the Federal Street car park for casual visitors and leaseholders through to settlement of the transaction with ICD.