Sale Of Birkenhead Point Shopping Centre
12 October 2004
Sale Of Birkenhead Point Shopping Centre And Birkenhead Marina Facility
CDL Hotels New Zealand Limited (“CDLHNZL”) today advises that its subsidiary, Birkenhead Investments Pty Limited, has entered into an agreement (the "Agreement") to sell the Birkenhead Point Shopping Centre and Birkenhead Marina facility to Intro International Limited for a consideration of A$111 million (NZ$120 million).
As at 31 December 2003 the Birkenhead Point Shopping Centre and Birkenhead Marina facility, which are treated as investment properties by CDLHNZL, had a book value of A$102 million (NZ$111 million) and contributed profit before tax and minority interest of A$5 million (NZ$6 million) to CDLHNZ profitability for the period to 31 December 2003. Completion under the Agreement is conditional upon Intro International Limited obtaining approval from the Foreign Investment Review Board ("FIRB") to the purchase of the property. Completion is expected to take place on the later of 30th November 2004 and Intro International Limited obtaining FIRB approval.
Birkenhead Investments Pty Limited is currently applying for a new lease extension to the Birkenhead Marina facility. In the event that such a new lease extension is not obtained by the completion date of the Agreement, Intro International Limited shall be entitled to withhold payment of A$3,850,000, which amount shall be payable by Intro International Limited to Birkenhead Investments Pty Limited upon the new lease extension to the Birkenhead Marina facility being granted.
CDLHNZL said that it would review its requirements for the cash. CDL Hotels New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels Plc, and is the largest hotel operator in New Zealand.
The Company owns, leases, franchises and manages a portfolio of 28 hotels under the Millennium, Copthorne and Kingsgate brands, and employs approximately 2,400 staff.