SkyCity Entertainment Group has completed the NZ$74.5 million (US$44 million) sale of several commercial properties in central Auckland, advancing a wider asset disposal programme designed to strengthen its balance sheet and reduce debt.
The casino and hospitality operator confirmed settlement on September 1, covering its 99 Albert Street office building and investment properties on Victoria Street. The portfolio has been acquired by Christchurch-based property fund manager Mainland Capital in a joint venture with Russell Property Group.
The transaction had become unconditional on July 17, when SkyCity announced the NZ$74.5 million sale price and set September 1 as the expected settlement date. Proceeds from the company’s asset monetisation programme are intended primarily for debt repayment and to provide greater financial flexibility amid challenging trading conditions.
SkyCity is pursuing further property disposals. In July, the company signed a non-binding heads of agreement for the potential sale of The Grand Hotel in Auckland. The proposed transaction remains subject to due diligence, binding documentation and approval from New Zealand’s Overseas Investment Office, with SkyCity targeting completion in late 2026. Financial terms have not been publicly disclosed.
In its FY2026 results, SkyCity said it expects its asset monetisation programme to generate aggregate gross proceeds of between NZ$275 million and NZ$300 million, assuming the Grand Hotel transaction proceeds. The group plans to direct the proceeds toward reducing debt and is targeting a net debt-to-EBITDA ratio below 2.0 times during FY2027.
The property strategy comes as SkyCity also faces takeover interest. The company recently confirmed receiving two preliminary acquisition proposals, including an offer from Oaktree Capital Management at NZ$0.70 per share and another from an unidentified party at NZ$0.75. Both were rejected after the board concluded they did not adequately reflect the underlying value of the business.
SkyCity has also been dealing with the consequences of earlier compliance failures in Australia. In June, SkyCity Adelaide agreed to an A$21 million penalty as part of an in-principle settlement with South Australia’s Liquor and Gambling Commissioner over issues identified by an independent regulatory review. The agreement also includes additional governance and compliance requirements for the Adelaide casino.
With the Auckland commercial property sale now settled, SkyCity has completed a significant step in its plan to convert non-core assets into cash while lowering leverage and improving its financial position.