SkyCity Completes NZ$74.5m Sale Of Auckland Properties
The property sale forms part of SkyCity’s asset monetisation programme, which was launched alongside a NZ$240m equity raise to strengthen the company’s balance sheet.
SkyCity has completed the NZ$74.5m sale of its 99 Albert Street office building and adjoining Victoria Street properties in Auckland, as the casino operator continues efforts to raise cash and reduce debt.
The New Zealand-listed company confirmed the settlement of the sale on 1 September, with the properties sold to Christchurch-based commercial property manager Mainland Capital in a joint venture with Russell Property Group.
The transaction forms part of SkyCity’s asset monetisation programme, launched alongside a NZ$240m equity raise last year to strengthen the company’s balance sheet.
The programme also includes a non-binding agreement to sell the group’s Grand Hotel and is expected to generate between NZ$275m and NZ$300m in gross proceeds by December 2026.
SkyCity plans to use the proceeds to reduce its debt.
Progress On Strategic Commitments
Reporting results for the year ended 30 June, SkyCity chief executive Jason Walbridge said the company had made progress against the commitments established during last year’s capital raise.
Walbridge said:
“In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.”
Weaker Annual Results
The property sale comes as SkyCity reported weaker annual financial results.
Underlying revenue was NZ$822.7m for the year, broadly unchanged from the previous period. However, underlying EBITDA fell 22.3% to NZ$181.6m, while underlying net profit declined 46.9% to NZ$38m.
Reported EBITDA fell 44.2% to NZ$120.5m, affected by accounting adjustments and remediation costs in Adelaide.
SkyCity reported NZ$591m in net debt at the end of the financial year.
Walbridge added:
“We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualised benefits of NZ$30m in FY27 and growing to total benefits of NZ$70m in FY28. This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”
Adelaide Regulatory Agreement
SkyCity also confirmed a non-binding agreement with South Australia’s Consumer and Business Services regulator relating to a review of its Adelaide casino.
Under the agreement, SkyCity has accepted a A$21m fine, which will be paid in three instalments over two years.
The operator said it would not provide FY27 earnings guidance due to macroeconomic uncertainty.
SkyCity is expected to provide a further trading update at its annual meeting in October.
