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the Auckland campus of Sky TV at Mount Wellington; to the rear is the Sky’s Studio One building on land that it will lease following the sale of the block of land – in the foreground is the land that will be vacated for other purposes.
Sky Television has struck a deal to sell its sprawling Mount Wellington campus where its Auckland headquarters are located.
The company will sell the property for $ 56 million to Goodman Property Trust and lease the land and the Studio One headquarters that it still needs for $ 1.64 million per year, with annual rent reviews.
He will also rent another building on the property, Studio Three, for a year for just over $ 1 million while the staff move.
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Sky said the sale was conditional on NZX’s listed real estate trust performing additional due diligence, including engineering and environmental assessments, and then final approval by Goodman’s board of directors.
He expected those steps to be completed by mid-February.
The sale-leaseback agreement is for a 10-year term, with an additional five-year renewal right.
Managing Director Sophie Moloney said the sale of the land would free up capital and reflected her desire to significantly reduce her footprint on Mount Wellington and be present in the Auckland cbd.
Goodman chief executive John Dakin said he plans to quickly lease the parts of the property that Sky won’t be using.
“Ultimately, these sites will be merged and redeveloped into an urban logistics domain that will maximize the value of Auckland’s central location,” he said, describing it as a “five-year plan and more”.
Sky’s Mt Wellington campus, covering an area of just over 4.4 hectares, is located in the middle of suburban residential housing.
But Dakin said Goodman thought it was better suited for light industrial purposes than housing.
“The Auckland industrial market is 99 percent occupied. I don’t think a day goes by without someone asking us for more space.
The sell-off comes as Sky shares benefit from a strong advance on the NZX following higher earnings and greater investor confidence in the stability of the company.
Sky shares rose 2% in late-morning trading after the announcement and another that Sky had extended and broadened its rights agreement with US media company ViacomCBS, adding Paramount Pictures films to Sky’s Internet streaming service Neon.