New Zealand-based tourism, leisure and entertainment company SkyCity Entertainment Group has signed an agreement to sell The Grand Hotel and its business assets for NZ$221m ($125m).
The company is divesting the property to Eden Global Capital Private Limited (EGC) and Auckland City Collective Limited (ACCL).
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The buyers are part of a privately owned property investment and development organisation with interests in Australia, Singapore and other Southeast Asian markets.
The sale is subject to conditions, including consent from the New Zealand Overseas Investment Office. SkyCity expects the conditions to be met during the remainder of this year and is targeting settlement in mid-December.
Under the agreement, SkyCity will continue to manage and operate the hotel for the purchasers until 30 June 2027.
The transaction is part of SkyCity’s previously announced asset monetisation programme. The company plans to use the proceeds from the programme to repay debt and increase its financial flexibility.
SkyCity chief executive Jason Walbridge said: “We are pleased to have entered a binding agreement to sell The Grand Hotel and to be working with EGC and ACCL to help further strengthen the SkyCity Auckland precinct.
“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 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 EGC’s and ACCL ’s ownership and commitment to the hotel.”
The Grand by SkyCity includes 312 modern rooms including 20 suites. It also features two restaurants, East Day Spa, heated lap pool, sauna and spa pool.
EGC and ACCL director Scott Collins said: “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.”
