Kirkcaldie & Stains building sale progresses

DAVE BURGESS
Last updated 10:24 13/08/2014

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Kirkcaldie & Stains is a step away from receiving $45.85 million for the two buildings that make up the Harbour City Centre.

Kirks entered into a conditional sale and purchase agreement with a Wellington-based investor in July for the buildings on the Lambton Quay site.

The investor advised Kirks yesterday that the due diligence condition had been satisfied.

The agreement is still conditional on Kirks' shareholders approving the proposed sale within 30 working days. If approved, the settlement would occur 10 working days after that.

Full details of the proposed transaction would be revealed to shareholders at the beginning of September.

Kirks managing director John Milford declined to comment last night, saying he had to provide details to shareholders first before talking about the sale in public.

The front building has shops on the ground floor and offices above, leased to Contact Energy with room for 500 staff.

It was quake-strengthened last year to almost 100 per cent of building code, with massive steel girders.

The rear building, just off the city's main shopping street, is quake-prone and is seen as a potential development site rather than suitable for strengthening.

In 2012, David Cushing, whose H&G Ltd owns almost 20 per cent of Kirks' shares, said the Harbour City building was "an absolute cracker of a property" and would be sold only if the value price was attractive.

The Harbour City Centre was last recorded in the books as worth more than $50m.

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