The High Court of New Zealand has ruled in favour of the casino operator’s interpretation of a concession agreement.
New Zealand.- SkyCity Entertainment Group has announced through a company filing that the High Court of New Zealand has ruled in favour of its interpretation of a concession agreement with MPF Parking NZ Limited (MPF). This ruling determined the compensation sum payable to MPF following the termination of a long-term concession granted to MPF over the SkyCity Auckland car park.
The High Court rejected MPF’s interpretation. Compensation will now be calculated in accordance with the methodology applied by SkyCity’s valuer.
See also: SkyCity CEO Michael Ahearne to step down
The casino operator said it received a termination notice from MPF on October 27, 2022. Under the terms of the concession agreement dated April 3, 2019, SkyCity was required to take back the operation of the car park following termination, with consideration payable to MPF being determined by a market price methodology and process set out in the agreement or, failing agreement, as determined by an independent umpire.
The umpire process, initiated in March 2023, was suspended due to a dispute notice from MPF regarding the legal interpretation of certain provisions.SkyCity filed proceedings in the High Court in April.
The company said: “The SkyCity Auckland car park business is a high-quality, integrated operating asset that is a key driver of local gaming visitation. There remains uncertainty regarding the timing for the reacquisition of the Auckland car park assets and therefore the associated impact on earnings for FY24.”