By Chris Hutching
Friday 23rd August 2002 |
Text too small? |
It is likely to be one of the biggest property deals of the year.
A Richina subsidiary, Midland Tower, took ownership in 1995 when the developer reneged on obligations to another Richina subsidiary, construction company Mainzeal.
The building was dogged by bad publicity during the 1990s but over the past couple of years it has been fully tenanted at rentals in the $330-450/sq m range.
The buyer is Navire Holdings, which according to Companies Office records, is a company associated with Farhad Vladi, a German national from Hamburg.
The deal is conditional on Richina shareholder approval but several other conditions have been satisfied including, the buyer's due diligence, consent of Bank of New Zealand transferring a loan facility and a waiver by key tenant Mobil of its first right of refusal to buy the building.
Richina has received various offers in recent years but a revival in the Wellington office market prompted the latest offer, which directors consider fair.
The terms also provide for a $6 million deposit on the agreement becoming unconditional and for a deferred settlement to take place on June 30, 2003.
Midland will retain the net income until settlement.
Richina recently told shareholders it was on target for a strong result.
No comments yet
Spark New Zealand appoints new director to the Spark Board
AFT to announce full year results on May 23 2024
CRP - Korella North Takes Another Two Steps Forward
May 3rd Morning Report
ASB workers to strike as bank proposes an effective pay cut
Rising tides, sinking stocks: study explores cost of climate change
May 2nd Morning Report
AGL - Change in Senior Management
Devon Funds Morning Note - 01 May 2024
Rick Christie to step-aside as a non-executive director