New Zealand’s SkyCity Entertainment Group has reached an agreement with MPF Parking NZ Limited (MPF) for the casino operator to take back control of the car park adjacent to SkyCity Auckland by the end of January 2024.
Following months of legal action between the two entities after MPF terminated its long-term concession agreement in October 2022 – with disagreement between the two over the amount of compensation SkyCity must pay to take back the asset – SkyCity said Monday that it will now pay a compensation sum of NZ$204 million (US$125 million) and that the disputes between the parties in respect of this matter have been fully and finally resolved.
SkyCity described the agreement as a “mutually beneficial commercial resolution to the outstanding disputes with MPF” and said it “looks forward to working with MPF on the orderly transfer back to SkyCity of the Auckland car park business, which is a high-quality, integrated operating asset that is a key driver of local gaming visitation.”
The delay in settling the car park dispute was previously cited as one of the reasons for SkyCity last week lowering its revenue and EBITDA guidance for FY24. The company also noted lower than expected gaming revenues at its Auckland and Adelaide casinos during the first five months of the financial year.
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