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Highlights
- Sky announced on Thursday that it had sold its Mt Wellington campus for $56 million to Goodman Property Trust (GMT).
- The sale remained contingent on further due diligence and a final consent of Goodman’s Board.
- The move is likely to be completed by mid-February 2022.
Sky Network Television Limited (NZX:SKT; ASX:SKT), a renowned broadcasting firm in NZ, confirmed on Friday that it had sold its Mt Wellington campus for $56 million to Goodman Property Trust (GMT). The sale of 3 properties that comprised the Mt Wellington campus pursued a competitive bidding procedure.
The sale will remain contingent on Goodman finalising additional due diligence, together with engineering and environmental evaluations and on the final consent of Goodman NZ Limited (GMT’s manager).
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The sale is expected to be fulfilled by mid-February next year.
The agreement includes:
- A leaseback of a building on the property, Studio One, which includes core production and technological facilities for 10 years.
- A leaseback of one more building, Studio Three, for 1 year.
- The third building, known as Studio Two, has been sold as vacant.
- A right to renewal for up to 5 years, and an alternative for the Company to walk out any time after 5 years.
The Group will lease back Studio One for $1.645 million per annum once the lease begins and a leaseback of Studio Three for $1.010 million per annum.
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Sophie Moloney, SKT’s CEO, stated that the sale of Sky’s Mt Wellington properties was in harmony with the company’s approach of reusing capital for projects that develop value. The sale also shows the Company’s wish to curtail its Mt Wellington trajectory and establish a presence in a central Auckland site.
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SKT’s Board is evaluating the Company’s capital structure and has engaged tax advisors and legal experts to decide the most suitable capital management approach that includes future dividend policy.
On 17 December, SKT ended the trading session at $2.71, down 0.73% from its previous close.
Bottom Line
Sky increased its FY22 guidance this month, raising the midpoint of previous EBITDA and NPAT forecasts by 27% and 96%, respectively, for FY22.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)