Report from BusinessDesk
Kirkcaldie & Stains, Wellington’s up-market department store, plans to sell its Harbour City Centre building on Lambton Quay, after several aborted attempts to split its retail and property businesses.
The Wellington-based firm has hired Bayleys to run an international marketing campaign to sell the building by tender, it said in a statement. Any successful purchase will need shareholder approval.
The building was valued at $50 million as at Aug. 31, more than twice the company’s market value of $20.5 million, or $2 a share. It was extensively renovated last year to meet earthquake strengthening requirements and is almost fully tenanted by the head office of NZX-listed heavyweight Contact Energy.
Kirkcaldies’ board abandoned plans to separate its retail and property businesses after hiring advisers to investigate the idea in 2012. The review was prompted by a mystery buyer keen on buying the building who subsequently walked away.
The company will hold its annual meeting in Wellington next week on Feb. 19.