Kirkcaldie & Stain's [NZX: KRK], Wellington's upmarket department store, has found buyers for the two buildings making up the Harbour City Centre, provided certain conditions are met for each property.
Kirk's entered into separate conditional sale and purchase agreements for the front and rear buildings of the Lambton Quay site, it said in a statement just before the market closed. More details will be announced once due diligence for each transaction is completed, and both deals need shareholder approval.
The front building, a historically significant structure that formerly housed Kirk's long-defunct competitor DIC, accounted for most of the $50 million valuation ascribed to the property. Its sale is subject to physical works being completed to separate it from the back building, which houses a car park, shops and low-grade office space.
Work to separate the buildings is expected to be satisfied in the second half of June. Due diligence and title conditions are likely to be met in early July, with shareholder approval within 30 working days of that, the company said.
Due diligence on the rear building is expected to be satisfied five months after the title and physical works conditions, to allow the buyer to explore potential development of the site.
Kirkcaldie plans to recapitalise its retail unit from the proceeds of the asset sales before returning any surplus to shareholders.
Its retail segment returned to profit in the six months ended Feb. 28, with earnings of $563,000 as it fattened margins from its cost reduction programme.
The shares were unchanged at $2.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- NBR ONLINE paid member subscribers top 4000
- New lawyers not doing 'much better' than job at McDonald's – report surprises
- Marlborough-based wine company lists on the NXT despite OIO hiccup
- Brexit applies a strong currency and customer-growth headwind to Xero
- Land banking in Auckland is causing the housing crisis: LGNZ
Most listened to
- Marlborough Wine Estates CEO Catherine Ma explains why the Chinese-owned company listed on the NXT
- National list MP Chris Bishop says Phil Twyford's accusation the government has made housing a 'race issue' is hypocritical
- Bond prices have fallen while oil prices have risen - Jason Walls explains why on Walls' Street
- NBR technology editor Chris Keall on hitting 4000 member subscribers
- In his Editor's Insight Nevil Gibson on the future of health information technology and medical devices industry