BREAKING NEWS
Australia beat Black Caps in Wellington ODI ... Read more
Close

Kirkcaldie's property sale stalls

JASON KRUPP
Last updated 05:00 04/12/2012
kirkcaldie & stains
MAARTEN HOLL/Dominion Post

Kirkcaldie & Stains

Relevant offers

Commercial Property

Wellington's former Red Cross building on the market Chow brothers move Auckland property into NZAX-listed shell company RIS Group Large development land parcel in Napier on the market Former post office in Lower Hutt to be converted into apartments Low vacancy rates in Wellington and Auckland office and retail sectors Gaming company Aurora 44 brings new life to former CIT complex Petone Grenada Link road making life difficult for Petone businesses Low voter turnout could block trusts attempt to sell land at of Shelly Bay Bumper year for hotel sector in 2015 sees 11 hotels sell for $290m Lower Hutt warehouse with opportunity to redesign up for sale

A move by Wellington retailer Kirkcaldie & Stains to sell its real estate portfolio appears to have hit a snag after the bidder for its retail and office building in the capital missed a second due diligence deadline.

The department store and property manager yesterday announced the unnamed party looking to acquire the six-storey Harbour City Centre had not confirmed it was satisfied with the assets despite that being a condition of the sale. The original deadline for the due diligence report was mid-November, later extended to the end of the month at the bidder's request.

Harbour City Centre has undergone extensive earthquake strengthening, and its anchor tenant, Contact Energy, had recently leased all the office space after smaller tenants were given notice.

Real estate agency Bayleys valued the building at $46.5 million last year.

When the deal was announced in late October Kirkcaldie's share price rose 25 per cent in just three days to $3.25 before dropping back to its current level of $3.05.

The sale of the property comes as the firm has struggled to be profitable. It reported a net loss of $773,000 for the 12 months ending August, above the $56,000 loss seen in the prior year.

Retail sales in the period fell to $37.3m from $38.7m previously, while rental revenues rose to $4.1m from $3.7m.

The building is situated opposite its main store front on Lambton Quay, which it rents from a firm controlled by Sir Robert Jones.

Ad Feedback

- Fairfax Media

Special offers
Opinion poll

Do you rent or own your home?

Rent alone

Rent with others

Own with mortgage

Own freehold

Vote Result

Related story: $1m-plus in unclaimed bonds

Featured Promotions

Sponsored Content