SkyCity Entertainment Group Ltd confirmed on Friday that its $220 million sale of a long-term concession over its Auckland carparks to Australian bank Macquarie Group Ltd’s Macquarie Principal Finance Group was unconditional and is expected to be completed next Monday, 19 August.
Macquarie has appointed Care Park NZ Ltd, a subsidiary of Care Park Group Pty Ltd of Melbourne, to operate the parking.
The concession will entitle Macquarie to operate SkyCity Auckland’s 3200-space main carpark until 30 June 2048, the renewal date for the casino licence. SkyCity will retain ownership of the land & buildings and responsibility for land & building services.
Paking will remain available for customers, staff & public use, including casuals & licence holders.
SkyCity said in April the transaction would reduce its gearing by about 0.5 times. It planned to reduce available bank facilities by about $100 million at settlement.
The company said the transaction would reduce its ebitda (earnings before interest, tax, depreciation & amortisation) by $17.5-20 million over the 2020-22 financial years, reflecting ongoing payments for carpark usage & lost earnings from external carpark revenue.
The sale price implies a 2020 financial year ebitda multiple of about 12.5 times, which SkyCity said made it value-enhancing.
- SkyCity will release its 2019 financial results today.
5 April 2019: SkyCity sells parking concession
Attribution: Company release.