Lawyers for Precinct Properties [NZX: PCT] have settled a dispute that followed the purchase of HSBC tower in Auckland's CBD.
No 1 Queen Street Ltd sold the 21-level tower to the NZX-listed property company for $103 million in May 2013.
However, about a year later, No 1 Queen Street director Chong Du Cheng told NBR ONLINE the company was taking legal action in breach of contract because the settlement was different from that expected and a very short notice was given on the settlement date.
The breach of contract dispute was set down for trial today before Justice Mary Peters in the High Court at Auckland.
However, this morning No 1 Queen Street's lawyer Bruce Stewart QC told the court an "unexpected" settlement had been reached on the eve of trial.
He said at 9pm last night a full and final settlement had been reached and the case could be struck out.
Lawyers for both sides would not comment on the details of the settlement.
According to Precinct Properties' half yearly update in February, the tower was acquired in May 2013 and had benefited from a six-month vendor underwrite.
The HSBC site is 2322sq m and has development potential on the northwest waterfront through Precinct’s ownership of the Downtown Shopping Centre.
The mall sits above the route for the City Rail Link and is next to Queen Elizabeth Square, which Precinct is negotiating to buy from Auckland Council.
Shares in Precinct opened at $1.10 this morning, up 10.55% over the last 52 weeks.