SkyCity Entertainment Group said in a Friday morning announcement that it has entered into a sale and purchase agreement with Eden Global Capital Private Limited and Auckland City Collective Limited (EGC and ACCL) for the sale of The Grand Hotel and its business assets for NZ$221 million (US$124 million).
EGC and ACCL are constituents of a privately owned, diversified property investment and development organization with interests spanning Australia, Singapore and more widely Southeast Asia, it explained.
According to the filing, the transaction is conditional, including requiring consent from the New Zealand Overseas Investment Office. SkyCity, which has also agreed to continue to manage and operate the Grand Hotel for a transitional period until 30 June 2027, said the conditions are expected to be satisfied through the remainder of the year, with settlement targeted for mid-December 2026.
The transaction forms part of SkyCity’s previously announced asset monetization program, with capital proceeds to be used to repay debt and provide the company with greater financial flexibility to navigate current market conditions.
“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,” said SkyCity CEO, Jason Walbridge.
“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.”
EGC and ACCL Director Scott Collins added, “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.
“We look forward to the role that we can fulfil in the continued prominence and success of the SkyCity precinct.”
SkyCity previously announced the sale of an office building and investment properties located near SkyCity Auckland as part of its asset monetization program.
In a note, investment firm Forsyth Barr said the sale of The Grand Hotel would take SkyCity’s total asset monetisation to NZ$296 million – well above its original NZ$200 million target – and would reduce gearing to ~1.9x EBITDA.
“This is an important milestone for SkyCity which should support the removal of the negative watch on its S&P credit rating and a potential resumption of dividends,” Forsyth Barr said.
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