- Sky Network Television (SKT) sells three properties to Goodman Property Trust after a “competitive bidding process”
- The properties comprise Sky’s Mt Wellington campus and sold for a consideration of $56 million
- A one-year leaseback is in place for the Studio Three building, while Studio One has been secured on a ten-year leaseback for $1.645 million per year at the start of the lease
- The transaction is subject to GMT conducting additional due diligence, including engineering and environmental evaluations, and final approval by the board
- Sky last traded at $2.46 on December 15
Sky Network Television (SKT) has entered into a conditional agreement with Goodman Property Trust (GMT) for the sale of three properties after a competitive bidding procedure.
The properties comprise Sky’s Mt Wellington campus and sold for a consideration of $56 million.
The transaction is subject to GMT conducting additional due diligence, including engineering and environmental evaluations, and final approval by the board of Goodman (NZ) Limited.
Taking into consideration the Christmas closure period, Sky believes that these prior criteria will be met by mid-February 2022, with cash settlement occurring in early March 2022.
The transaction includes a ten-year leaseback of Studio One, which houses Sky’s key production and technical facilities. There is also a five-year renewal option and the opportunity for Sky to withdraw at any moment after five years.
A one-year leaseback has also been secured for the Studio Three building, allowing Sky’s warehouse and decoder workshop to relocate from there. The third structure, Studio Two, has been marketed as unoccupied.
The yearly rental of Studio One will be $1.645 million per year at the start of the lease, subject to market annual fixed rent reviews and a rental review upon renewal. Studio Three will be rented for $1.010 million per year.
Sky CEO Sophie Moloney said the sale is consistent with the company’s strategy of capital recycling.
“It also reflects our desire to significantly downsize our Mt Wellington footprint and have a presence in a central Auckland site, to facilitate our approach that enables many of our crew to match the nature of the work they do to the environment they need to be the most productive,” she said.
Sky last traded at $2.46 on December 15.