SkyCity has finalised the sale of its 99 Albert Street office building and adjoining Victoria Street properties in Auckland, closing a significant deal worth NZ$74.5m.
The New Zealand-listed casino operator confirmed settlement of the transaction on 1 September 2026, with the sale valued at approximately €37.9m in European currency terms.
The properties were acquired by Christchurch-based commercial property manager Mainland Capital, operating in a joint venture partnership with Russell Property Group.
This transaction forms a central part of SkyCity’s broader asset monetisation programme, which was launched alongside a NZ$240m equity raise last year to strengthen its balance sheet.
The programme is expected to generate between NZ$275m and NZ$300m in gross proceeds by December 2026, with the funds earmarked specifically for paying down the company’s accumulated debt.
The monetisation programme also includes a non-binding agreement to sell the group’s Grand Hotel, adding another layer to the company’s ongoing strategy of simplifying its asset base.
Chief executive Jason Walbridge commented on the company’s progress when reporting results for the year to 30 June, noting clear advances against commitments made at the time of last year’s capital raise.
Walbridge said: “In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.”
The property sale settlement arrived alongside a set of weaker annual financial results, with underlying revenue coming in at NZ$822.7m, roughly flat compared to the prior period.
Underlying EBITDA fell 22.3% to NZ$181.6m, while underlying net profit dropped sharply by 46.9% to NZ$38m over the same reporting period.
Reported EBITDA declined further, falling 44.2% to NZ$120.5m, impacted by accounting adjustments and remediation costs connected to the company’s Adelaide operations.
Net debt stood at NZ$591m at the financial year end, underscoring the urgency behind the asset monetisation strategy and the operator’s focus on reducing its debt load.
Walbridge added: “We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualised benefits of NZ$30m in FY27 and growing to total benefits of NZ$70m in FY28.”
He continued: “This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling.”
SkyCity also confirmed a non-binding agreement with South Australia’s Consumer and Business Services regulator regarding a review of its Adelaide casino, accepting a fine of A$21m payable across three instalments over two years.
The operator declined to provide FY27 earnings guidance, citing macroeconomic uncertainty, but confirmed it would deliver a trading update at its annual meeting in October.
