News | Motoring
21 Oct 2017 23:30
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Motoring

    NPT sells Auckland high-rise interest

    Listed property investor NPT has sold its interest in the AA Centre in central Auckland to SkyCity Entertainment for $47 million.


    Listed property investor NPT has sold its interest in the AA Centre in central Auckland to SkyCity Entertainment for $47 million.

    "The sale of this property represents a first step on the path to repositioning NPT," chair Bruce Cotterill said.

    NPT overhauled its board after shareholders voted to reject a proposal to hook up with larger property investor Kiwi Property Group in April.

    They instead favoured a proposal by rival property company and cornerstone NPT investor Augusta Capital to block the deal and appoint three new directors to the board.

    NPT's board has undertaken a thorough review of the FY18 business plan and Cotterill said directors would update shareholders on a proposed strategy in the coming weeks.

    The sale proceeds "will be used to invest in the purchase of assets where we can see an opportunity to add value," he said.

    The AA Centre is located on the corner of Albert and Victoria Streets and connects to SkyCity Auckland via a through-site link.

    NPT's interest in the building includes 15 levels (12,000 square meters) of commercial office space, ground floor retail, the through-site link and 90 car park spaces.

    The remainder of the interest in the building is owned by the New Zealand Automobile Association, SkyCity said.

    SkyCity said the purchase price reflects about a 7 per cent yield on the income from the property and the "acquisition is expected to be marginally earnings accretive for SkyCity from FY19 and funded from existing bank facilities".

    The casino operator said the deal is part of a plan to exert greater control over its Auckland footprint to create "opportunities for further hotels, apartments, food & beverage outlets, entertainment facilities and office spaces" to benefit more from increase foot traffic expected after the City Rail Link is finished.

    Settlement will take place in July 2018.

    Under the agreement, NPT is required to complete capital improvements to the building, which were commenced prior to the agreement being signed.

    The estimated cost is $2 m.

    After allowing for these capital improvements, this transaction will increase NPT shareholder equity by $2 million over the figures reported in the audited financial statements to March 31, said Cotterill.

    According to NPT's annual report, the AA Centre has a market value of $40.85m.

    NPT shares rose 2.6 per cent to 59 cents and have fallen 12 per cent over the past 12 months.

    SkyCity gained 0.3 per cent to $3.75 and have fallen 16 per cent over the past year.


    NZN




    © 2017 NZN, NZCity


     Other Motoring News
     20 Oct: Fatal accident in northern Hawke's Bay
     20 Oct: Australian teacher shot dead in Nairobi
     19 Oct: Race drivers fight, one tased and arrested, amid road rage on US speedway
     19 Oct: NZ drivers feel unsafe behind the wheel
     18 Oct: Spurs hold Real Madrid in Champions League, Liverpool thrashes Maribor 7-0
     17 Oct: Driver in Waikato crash faces manslaughter
     16 Oct: Ford's Mostert eyes Gold Coast turnaround
     Top Stories

    RUGBY RUGBY
    Tasman set up NPC final with Canterbury More...


    BUSINESS BUSINESS
    Shares rise as weak dollar helps companies More...



     Today's News

    Rugby:
    Tasman set up NPC final with Canterbury 21:57

    International:
    ASX rebound: What is behind it and can it last? 21:37

    International:
    'It's about bloody time': Period 'blood' shown in advertisement in effort to confront taboos 21:17

    Rugby:
    Canterbury too good for Harbour in semi 21:17

    Auckland:
    Person critical after New Lynn crash 18:57

    Golf:
    Brown well-placed at WA Open in Perth 18:37

    Rugby:
    Heartland Championship finalists found 18:07

    Accident and Emergency:
    Four people fall from balcony at hotel 17:27

    Rugby:
    Steamers outlast Otago for finals spot 16:57

    Soccer:
    Glory and Mariners hunt first A-League win 16:17


     News Search






    Power Search


    © 2017 New Zealand City Ltd