SkyCity Entertainment Group could raise between NZ$200 million and NZ$250 million ($117 million to $146 million) from the proposed sale of The Grand Hotel in Auckland, according to investment firm Forsyth Barr.
Forsyth Barr valued the property at approximately NZ$200 million in a July 20th research report. The firm said industry checks and recent comparable transactions indicated a sale price of up to NZ$250 million could be achievable.
As AGB reported on Wednesday, SkyCity has entered into a non-binding heads of agreement for the sale. The financial terms and prospective buyer remain confidential.
Forsyth Barr said the transaction, together with SkyCity’s NZ$74.5 million ($43.6 million) sale of its 99 Albert Street office building and nearby investment properties, would take the operator above its NZ$200 million asset-sale target.
The firm said completing the program could return SkyCity’s gearing to within the board’s target of below two times EBITDA. It could also support the removal of S&P Global Ratings’ negative watch and provide scope for dividends to resume in the 2027 financial year.
SkyCity plans to use the proceeds to repay debt and increase its financial flexibility.
The proposed hotel sale remains subject to due diligence, binding documentation and consent from New Zealand’s Overseas Investment Office. SkyCity expects to receive the proceeds in late 2026.
