The mystery buyer of Kirkcaldie & Stain's Harbour City Centre on Wellington's Lambton Quay has walked away after deciding the building was not the right fit as an investment.
The bidder for the $46.5 million property confirmed it wasn't satisfied with the building after deciding the rear development site did not fit its business plan, Kirkcaldie says in a statement. The buyer missed last Friday's deadline to confirm it was satisfied after performing due diligence.
Kirkcaldie "understands that the purchaser, whilehappy with the main building, concluded that the associated rear development site did not fit with its business plans", it says. "The company is continuing to review its options with respect to the Harbour City Centre buildings."
The building is seen as the jewel in the unprofitable retailer's crown, with its value easily eclipsing Kirkcaldie's entire market capitalisation of $31.2 million, a value gap that has attracted investors including corporate raider Sir Ron Brierley and former Brierley Investments chairman Sir Selwyn Cushing's family.
Kirkcaldie first flagged the sale of the building on October 26, conditional on the purchaser completing and confirming satisfaction with due diligence by 5pm on November 30.
Shares of tightly held Kirkcaldie last traded unchanged at $3.05 and have jumped 17% since the conditional sale was announced in October.