SkyCity strikes conditional deal to sell The Grand hotel to overseas buyer

The company expects the money from the 312-room hotel in late 2026.

The Grand by SkyCity

“The financial terms of the heads of agreement remain confidential at this stage.

“The transaction forms part of SkyCity’s previously announced asset monetisation programme. Capital proceeds received under the asset monetisation programme will be used to repay debt and provide SkyCity with greater financial flexibility to navigate current market conditions,” it said.

The kitchen counter seats at Metita Restaurant in SkyCity Grand. Photo / Dean Purcell

CBRE said in advertising the hotel is a 47,595sq m building with two restaurants, a swimming pool, gym and 83 car parks.

It has direct access to the Sky Tower, SkyCity Casino, theatres, dining, and the newly opened New Zealand International Convention Centre.

The building at 90 Federal St has a market valuation estimated by investment firm Forsyth Barr at $200m, with expected transaction values ranging between $200m and $250m, CBRE said.

SkyCity engaged CBRE to sell properties and raise money.

The presidential suite at SkyCity Grand Hotel in Auckland.

Last week, the company announced it had sold four Auckland office buildings, including its own headquarters.

The buyers are Christchurch’s Mainland Capital and Brett Russell’s Russell Property Group.

That deal is for $74.5 million.

Settlement is due on September 1.

The City Rail Link station, with 99 Albert St behind it. Photo / Mainland Capital

At the half-year result in February, SkyCity chief executive Jason Walbridge said the company had a significant portfolio of real estate assets.

It was actively assessing monetisation options across individual assets and potential combinations.

External advisers were engaged and the company hoped to sell $200m of assets, he said.

99 Albert St in Auckland’s CBD with the SkyTower to the right. Photo / Mainland Capital

Different assets were being examined “to look at different options we may pursue to achieve our objectives before next February”.

“We own a number of commercial buildings – the carparks and also other assets we’re considering.”

Trying to generate cash from Auckland car parks had failed by February: attempts to lease about 3000 car parks beneath its Hobson/Nelson St buildings had not resulted in any success.

“The Auckland car park concession process has not resulted in a proposal that meets SkyCity’s commercial objectives,” Walbridge’s February statement said.

That follows the botched deal with Macquarie which was meant to lease the parks under the convention centre but were not finished in time for that deal to be done.

The company’s full-year result will be announced on August 20.

Dividends to shareholders are suspended.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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