SkyCity completes US$43m Auckland property sale
The settlement forms part of SkyCity’s broader strategy to generate funds through selected asset disposals.
New Zealand.- SkyCity Entertainment Group has announced the completion of the sale of its Auckland headquarters. It sold the 99 Albert Street office building and adjoining Victoria Street investment assets to Mainland Capital for NZ$74.5m (US$43.3m) through a joint venture with Russell Property Group.
SkyCity acquired its Auckland headquarters for NZ$47m (US$27.3m) in 2017. The sale forms part of its asset monetisation programme, under which the company is selling selected assets. It previously said proceeds from the transaction would be used to repay debt and strengthen its financial flexibility.
The company is pursuing further disposals under the programme. In July, it entered a non-binding agreement to sell The Grand Hotel in Auckland to an unnamed overseas buyer. Completion remains subject to conditions, including approval from New Zealand’s Overseas Investment Office. SkyCity has set a gross proceeds target for its asset monetisation initiative of NZ$275m (US$160m) to NZ$300m (US$174.5m) by December 2026.
The property settlement follows other significant corporate developments for the group. In August, SkyCity said its board had rejected two unsolicited takeover proposals, including a NZ$0.70-per-share offer from Oaktree Capital Management and a NZ$0.75-per-share proposal from an unnamed bidder. The approaches were subject to conditions including due diligence, financing, and regulatory and shareholder approvals.
