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Kirkcaldie shareholders to vote on $45.85m building sale

Shareholders in upmarket Wellington retailer Kirkcaldie & Stains [NZX: KRK] are to vote on whether to approve a deal to sell its Harbour City Centre property for $45.85 million. 

The unnamed buyer today completed due diligence in the property for an agreed purchase price of $45.85 million, compared to an Aug. 31, 2013 valuation of $40 million and carry value of $49.87 million as at Feb. 28 in Kirkcaldie’s first-half financial statements, it said to the NZX after the close of trading. 

Full details of the transaction will be release in the notice of extraordinary meeting, which will likely be distributed early next month. 

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.

The shares were unchanged at $2.20, and have increased 4.8 percent over the past 12 months. That values Kirkcaldie at $22.55 million.