Kirkcaldie to sell Harbour City property in single sale

Kirkcaldie & Stains (TVNZ)
Kirkcaldie & Stains 12-month price history (NZX.com)

Upmarket Wellington retailer Kirkcaldie & Stains [NZX: KRK] says both the front and rear buildings of its Harbour City Centre property will be sold in a single sale and purchase agreement, rather than separately. The stock climbed 6.1 percent before the announcement, made after the close of trading yesterday.

The stock rose 13 cents on small volumes to $2.25 ahead before the statement yesterday. Due diligence of the new deal is expected to be completed next month, though that may be extended, after which Kirkcaldie will announce the full details.

"The net effect of the new agreement is that the properties will be sold at the same time, as the properties are no longer required to be separated," the company said in a statement. "The new agreement is only conditional on the purchaser carrying out due diligence investigations of the properties as a whole ('due diligence condition') and the approval of the transaction by the company's shareholders ('shareholder approval condition')."

The front building, a historically significant structure that formerly housed Kirkcaldie's long-defunct competitor DIC, accounted for most of the $50 million valuation ascribed to the property.

Kirkcaldie plans to recapitalise its retail unit from the proceeds of the asset sales before returning any surplus to shareholders.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7726 -0.0021 -0.27%
AUD 0.9501 -0.0003 -0.03%
EUR 0.6318 -0.0018 -0.28%
GBP 0.4958 0.0001 0.02%
HKD 5.9920 -0.0153 -0.25%
JPY 92.7820 0.1980 0.21%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5541.7 5560.3 5541.7 0.12%
NASDAQ 4759.0 4781.9 4765.4 0.34%
DAX 9827.3 9924.0 9787.0 0.81%
DJI 17812.2 17962.8 17804.8 0.87%
FTSE 6545.3 6620.9 6545.3 0.48%
HKSE 23423.3 23495.6 23408.6 0.15%
NI225 17685.5 17692.6 17621.4 0.08%