Mobil-on-the-Park sells for $66 million

By Chris Hutching

Friday 23rd August 2002

Richina Pacific has clinched a conditional sale for $66 million of its 25-level Mobil-on-the-Park car park and office tower in Lambton Quay, Wellington.

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.

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