Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kirkcaldie to net $21.65 mln from Harbour City Centre sale

Kirkcaldie to net $21.65 mln from Harbour City Centre sale

By Paul McBeth

Sept. 8 (BusinessDesk) - Kirkcaldie & Stains, the upmarket Wellington department store, will net $21.65 million from the sale of its Harbour City Centre on the city's premier Lambton Quay location.

The company agreed to sell the iconic, recently upgraded inner city building to a Wellington property investor, Chao Zheng, for $45.85 million, according to its notice of special meeting for shareholders to vote on the deal. Kirkcaldie estimates the deal will generate $16.9 million of net proceeds immediately after the sale, with the buyer to pay a further $4.75 million on the anniversary of the settlement date. Shareholders will vote on the transaction on Sept. 23 in Wellington.

"In the short term the sale proceeds will provide funds to apply to the retail business but the quantum of the proceeds provides an opportunity to consider a return of capital to shareholders," the company said. "This will be kept under active consideration and reviewed in particular in light of the Christmas/New Year retailing performance."

The Harbour City Tower is a historically significant structure on Wellington's retail "golden mile" Lambton Quay, and formerly housed Kirkcaldie's long-defunct competitor DIC. The refurbishment and earthquake strengthening has allowed NZX-listed Contact Energy to take most of the building as its corporate headquarters. It accounted for most of the $50 million valuation for the property, which includes a second site on Brandon St.

Once the deal is completed, Kirkcaldie expects to have assets worth $38 million and liabilities of $5 million, down from assets of $65.8 million and liabilities of $28.7 million as at Aug. 31, 2013.

The company said retail business still holds "considerable uncertainty" and that the board and management are reviewing other actions to lift its performance.

"If the performance of the retail business does not improve, alternatives will be considered," it said.

Shares of Kirkcaldie fell 5.5 percent to $1.90 today, valuing the retailer at $19.5 million.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>

Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

Environment: Preliminary Environmental Data On New Zealand’s Air Quality Released Today

The Ministry for the Environment and Stats NZ have published the Our air 2021: preliminary data release today. We are currently working to revise the Our air 2021 report to incorporate analysis of the World Health Organization (WHO) 2021 air quality guidelines that were released on 23 September 2021... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>

Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>