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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- LinkedIn too slow, too vague after hackers put logons up for sale – and you could still be at risk
- Briefcase: Litigation funders and the 23-year-old class action lawyer, the lawyer who embraces social media
- Political week: Political groundwork rather than 'whizz bangs' the hallmark of Budget 2016
- Budget 2016: Landbankers choking Auckland's housing supply
- It's official – investors propel Auckland's rampant housing market
Most listened to
- Budgets are not branches of the entertainment industry says NBR's Rob Hosking
- “In those big markets we’re more of a disrupter” – Don Braid on Mainfreight’s global growth path
- Westland milk boss and Fonterra’s chairman are both picking a turnaround in the milk market next season
- Grant Thornton partner Greg Thompson says the walls of secrecy in the tax system are starting to erode
- Why has the construction industry got it good? Metro Performance Glass's CEO Nigel Rigby explains