Kirkcaldie & Stains sells profitable Harbour City Centre

BUSINESSDESK: Kirkcaldie & Stains, the Wellington department store owner, has sold its profitable Harbour City Centre building in the capital as it prepares to announce its annual result next week.

The company has entered into a conditional sale and purchase agreement with an unnamed buyer, subject to due diligence being completed by November 14, it said in a statement after the close of trading.

The deal is subject to conditional on due diligence and board and shareholder approval of the sale.

Kirkcaldie's Harbour City Centre building has an August 2011 valuation of $46.5 million, which will increase to $48.7 million when earthquake strengthening is completed, according to the company's 2011 accounts. At today's share price of $2.60, the company is valued at $26.7 million.

The Cushing family lifted its stake in the Wellington retailer to 19.99% in June, paying $2.68 a share to increase its stake from 18.49%.

In February, Kirkcaldie told shareholders it was looking to expand its property arm against the backdrop of an unprofitable retail business.

Kirkcaldie turned down a bid for the retail business earlier this year, saying the parties had "substantially different" views on the unit's value.

The company was not immediately available for comment.


1 · Got a question about this story? Leave it in Comments & Questions below.

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

1 Comment & Question

Commenter icon key: Subscriber Verified

So, it says it is looking to expand its property portfolio to the shareholders and it sells it.. That is odd. Bet they wish they had sold the retail bit when they had the chance.... I give it 6 months before the doors close

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7196 0.0000 0.00%
AUD 0.9379 0.0000 0.00%
EUR 0.6811 0.0000 0.00%
GBP 0.5771 0.0000 0.00%
HKD 5.5851 0.0000 0.00%
JPY 80.5840 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1258.3 7.630 2017-02-24T00:
Oil Brent 56.3 -0.650 2017-02-24T00:
Oil Nymex 54.0 -0.500 2017-02-24T00:
Silver Index 18.3 0.220 2017-02-24T00:

Indices

Symbol Open High Last %
NZX 50 7090.4 7099.6 7089.5 -0.44%
NASDAQ 5802.3 5845.3 5835.5 0.17%
DAX 11920.9 11934.6 11947.8 -1.20%
DJI 20751.9 20821.8 20810.3 0.05%
FTSE 7271.4 7271.9 7271.4 -0.38%
HKSE 24115.6 24121.9 24114.9 -0.62%
NI225 19232.1 19381.1 19371.5 -0.45%
ASX 5784.7 5784.7 5784.7 -0.79%