In a share market announcement released on Friday, SkyCity Entertainment Group said it was seeking expressions of interest for investors keen to acquire the 312-room hotel in central Auckland, with CBRE managing the potential sale process.
“The Grand offers an incoming purchaser a major five-star hotel property available with vacant possession in the centre of an established entertainment, events and dining hub,” said CBRE Hotels director Peter Hamilton.
“It is at the heart of the SkyCity precinct, which includes the Sky Tower, SkyCity Casino, Federal Street dining, theatres and visitor attractions, drawing around five million visitors annually. This provides a premium opportunity for a multinational brand.”
The property for sale comprises 47,500m2 and includes the site of the former SkyCity convention centre, which is now occupied by the All Blacks Experience and Wētā Workshop Unleashed, as tenants. There is also a direct connection to the recently opened New Zealand International Convention Centre (NZICC), which is owned and operated by SkyCity. The new convention centre is not part of the sale.
“The existing leases, visitor attractions and car parks broaden the asset’s income profile,” said CBRE Capital Markets senior director John Holmes.
“The former Auckland Convention Centre space, which currently houses the All Blacks Experience and Wētā Workshop attractions, also gives the owner future options over a substantial floor area.”
“With over 300 rooms, The Grand by SkyCity provides the scale required for strong operational efficiency, which will be attractive to seasoned hotel investors looking to establish or expand their New Zealand presence.
“The wider midtown regeneration story will also enhance the value proposition for buyers, as the completion of the City Rail Link draws closer.”
CBRE is conducting an international sales campaign to find a buyer for the hotel, with the EOI closing on June 10.
In the same market release announcing news of the potential sale, SkyCity said it had entered into an agreement to sell some other building assets in Auckland, including an office block.
The group also flagged a “challenging” economic environment in New Zealand and said trading and visitation had additionally been affected since March, particularly by fuel prices, most notably at SkyCity Auckland as well as at SkyCity Adelaide in Australia.
