SkyCity will continue to operate the property until June 2027 under the terms of the deal
SkyCity Entertainment Group has agreed a deal to sell The Grand Hotel in Auckland for NZ$221 million (approx. US$124 million).
SkyCity is selling the property and its business assets to Eden Global Capital (EGC) and Auckland City Collective (ACC).
EGC and ACC are constituents of a privately owned, diversified property investment and development organisation with interests in Australia, Singapore and elsewhere in Southeast Asia.
The transaction is subject to approval by New Zealand’s Overseas Investment Office and is expected to close before the end of this year.
After completion, SkyCity will continue to manage and operate the property on behalf of EGC and ACC for a transitional period until 30 June 2027.
SkyCity Entertainment Group announced its plan to sell The Grand in September, when it also appointed UBS to investigate potential transactions for the wider group.
“We are pleased to have entered a binding agreement to sell The Grand Hotel and to be working with EGC and ACC to help further strengthen the SkyCity Auckland precinct,” said SkyCity Entertainment chief executive Jason Walbridge. “With the sale of The Grand Hotel we will have raised proceeds above our commitment to shareholders, materially strengthened our balance sheet and enhanced our financial shareholders flexibility.
“The Grand Hotel has been an important part of the SkyCity precinct for many years and we look forward to it continuing to be a long -term part of the precinct, supported by ACC’s ownership and commitment to the hotel.”
EGC and ACC director Scott Collins commented: “Having previously owned commercial assets in Auckland, as a group we are pleased to have identified the opportunity to redeploy capital back into New Zealand.
“The nature, asset selection and timing of the acquisition, and the ability to work closely with SkyCity aligned well with our investment aspirations.”
Shares in SkyCity Entertainment Group (NZE:SKC) gained 3.03 per cent on the news to close at NZ$0.68 per share on Friday.