Melbourne-based developer ICD Property has expanded its reach internationally, purchasing a high-profile car park in Auckland for $40 million from SkyCity Entertainment Group.
New Zealand’s SkyCity has sold the Federal Street car park to reduce debt and fund future growth.
Settlement on the 427-space car park which is near the SkyCity’s Auckland casino is scheduled to settle in April 2019.
ICD was selected as the preferred bidder following a tender process managed by Colliers. A conditional agreement was signed in April and has now been finalised.
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“As our first international acquisition this site presents an exciting step in ICD’s growth,” ICD deputy managing director Matt Khoo said.
“Auckland drew our attention because it has strong market fundamentals, strong economic growth and in recent years has become a truly global city.
“We’re looking forward to the opportunities this site presents from an investment and development perspective.”
SkyCity said in its statement to the Australian Stock Exchange: "The sale of the Federal Street car park is consistent with SkyCity's intention to move to an 'asset-lighter' strategy which includes looking to divest non-core assets and businesses.”
It said it will use proceeds from the sale initially to pay down debt and then fund future growth opportunities as they arise.
SkyCity staff currently use the car park, who will shift their vehicles to the convention centre car park when the first tranche of about 600 spaces is completed. It will then operate the Federal Street car park for casual visitors and leaseholders through to settlement of the transaction with ICD.
In Victoria ICD has developed the $300 million Eq. Tower in A’Beckett St in Melbourne’s CBD, has residential developments in Collingwood, Hawthorn and Preston and a 1000-lot subdivision in Fyansford near Geelong.
ICD is part of a joint venture In Sydney with the City Tattersalls Club to develop a boutique 100-room hotel and 267-apartment tower on Pitt Street.