SkyCity has finalized the sale of its office building at 99 Albert Street along with adjacent properties on Victoria Street in Auckland, a strategic move aimed at strengthening its financial standing and reducing debt. The sale, valued at NZ$74.5 million (€37.9 million), was disclosed by the New Zealand-listed company on September 1 and has been acquired by Mainland Capital, a property management firm based in Christchurch, through a collaboration with Russell Property Group.
This transaction aligns with SkyCity's broader initiative to raise capital, which is part of a NZ$240 million capital project from last year. Ultimately, the company aims to secure between NZ$275 million and NZ$300 million by December 2026 to support its ongoing operations.
CEO Jason Walbridge remarked on the company's recent advancements, stating, "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 follows a challenging operational year for SkyCity. Although the company reported stable revenues at NZ$822.7 million, its EBITDA fell to NZ$181.6 million, a decrease of 22.3%. Furthermore, net income plummeted to NZ$38 million, reflecting a sharp decline of 46.9% compared to the previous year.
Walbridge highlighted ongoing efforts to simplify and enhance operational efficiency, stating, "We are becoming a simpler, smarter, and more connected business, actioning further savings to deliver annualised benefits of NZ$30 million in FY27 and growing to total benefits of NZ$70 million in FY28. This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling."
As of now, SkyCity has not forecasted expectations for FY27 but intends to provide updates on its trading operations in October.
