SkyCity Entertainment Group Ltd has signed an unconditional agreement to sell the Federal St carpark in downtown Auckland to ICD Property Investment Ltd (Michael Mai, Melbourne) for $40 million.
The 427-space carpark is on SkyCity’s books at $22 million.
It’s on the corner of Kingston St, half a block from SkyCity’s casino, hotel & hospitality precinct.
SkyCity said ICD was selected as preferred buyer after a tender managed by Colliers and signed a conditional agreement in late April. It will pay a 10% deposit, with settlement in 12 months.
SkyCity said in a release: “The sale of the Federal St carpark is consistent with SkyCity’s intention to move to an ‘asset-lighter’ strategy, which includes looking to divest non-core assets & businesses.
“The proceeds of the sale will be used initially to pay down debt and then fund future growth opportunities as they arise. The carpark is currently occupied by SkyCity staff that will be moved to the NZ International Convention Centre carpark when the first 600-space tranche is completed. Following this, SkyCity intends to operate the Federal St carpark for casual visitors & leaseholders through to settlement of the transaction with ICD.”
Attribution: Company release.