BUSINESSDESK: Kirkcaldie & Stains, the Wellington department store owner, has sold its profitable Harbour City Centre building in the capital as it prepares to announce its annual result next week.
The company has entered into a conditional sale and purchase agreement with an unnamed buyer, subject to due diligence being completed by November 14, it said in a statement after the close of trading.
The deal is subject to conditional on due diligence and board and shareholder approval of the sale.
Kirkcaldie's Harbour City Centre building has an August 2011 valuation of $46.5 million, which will increase to $48.7 million when earthquake strengthening is completed, according to the company's 2011 accounts. At today's share price of $2.60, the company is valued at $26.7 million.
The Cushing family lifted its stake in the Wellington retailer to 19.99% in June, paying $2.68 a share to increase its stake from 18.49%.
In February, Kirkcaldie told shareholders it was looking to expand its property arm against the backdrop of an unprofitable retail business.
Kirkcaldie turned down a bid for the retail business earlier this year, saying the parties had "substantially different" views on the unit's value.
The company was not immediately available for comment.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: NZ shares gain as ANZ Bank rises after results; Tegel climbs on debut
- NZ dollar soars to 2-month high vs Aussie as RBA cuts key rate on weak inflation
- My Food Bag IPO 'not off the table'
- Tegel chairman praises private equity owner after solid NZX listing
- Reserve Bank of Australia cuts to 1.75% on weak inflation, kiwi dollar gains vs Aussie
Most listened to
- MediaWorks' Bravo NZ deal a "case of 2+2 being more than simply Four" - Mark Weldon
- My Food Bag co-chief executive Cecilia Robinson discusses what its capital restructure might be made of
- Anthony Harper partner Jennifer Mills on the question: Uber drivers - contractors or employees?
- The government has backed itself into a corner into over how patent attorneys are regulated, says Rob Hosking
- In his Editor’s Insight, Nevil Gibson says the Australian Budget is a curtain-raiser for an election