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SkyCity cashes in on car parks

Mon, Apr 8, 10:02am by Staff Writer

SkyCity Entertainment Group Limited announced that it has entered into a binding agreement to sell a long-term concession over its Auckland car parks to Macquarie Principal Finance Group for an amount worth $220 million.

Macquarie was appointed by Care Park to operate car park that was required to perform parking operation as per the agreed service standards.

After the fulfillment of certain conditions, the settlement is expected to be completed by 31st July, 2019 according to Kalkine Media.

The parking pricing for the SkyCity VIP and loyalty customers and staff will be fixed, however it will grow at a rate of 2.5 per cent per annum.

Out of the total car parks, 450 will be reserved exclusively for VIP members.

Also, SkyCity will be able to book up to 900 car parks for the game promotions, four times a month.

During the peak period, there will be a mandatory closure of the car parks in order to prioritise the access for the SkyCity VIP and loyalty customers and staff.

The operator service standard included that the operator will be operating the car park with care, skill as well as diligence in a proper, safe and efficient manner.

The operator will make sure that there is minimal disruption in case of broader business activities of SkyCity.

It needs to implement a health and safety plan that remains consistent with the existing standards of the casino operator.

SkyCity holds the right to terminate the concession agreement in certain circumstances, where there is a breach of availability regime, operator in general persistent breach of service requirements or in such cases where there is a damage to the reputation of SkyCity.

On the other hand, Macquarie can also terminate the concession agreement in case of insolvency of SkyCity or in case of breach by SkyCity of key concession provisions.

Darwin casino sale confirmed

SkyCity has finally confirmed the sale of its Darwin casino to US-based global hospitality operator Delaware North in a statement made by chief executive officer Graeme Stephens.

“We are pleased that the sale of SkyCity Darwin is now unconditional. The sale is consistent with our strategy to sell certain non-core assets and to allocate capital to assets and businesses which we feel are better aligned with our long-term strategic objectives,” Mr Stephens said.

The Hotel Conversation detailed the key terms of the sale are that the sale price of A$188 million is for 100 per cent shares in SkyCity Darwin Pty Limited.

The Little Mindil property located adjacent to the SkyCity Darwin site, has been retained by SkyCity and is to be sold separately. It is valued at A$11 million.

“Following completion of the transaction, SkyCity will provide certain agreed transitional services to Delaware North,” Mr Stephens said.

“Completion of the sale is expected to occur on April 4, 2019.”

In a previous statement made in November 2018, Mr Stephens said that the sale is a good outcome for SkyCity, the resort’s staff and the city of Darwin.

“I’m really pleased that following a very competitive tender process, Delaware North has emerged as the successful bidder,” he said.

“They are a highly respected and well-established hospitality and gaming company and I’m very comfortable handing over the business we have built up over the past 14 years to an operator of this calibre.”

Mr Stephens says while the resort has been performing better from a financial point of view during the past 12 months, SkyCity’s future strategy had the company looking closer to its New Zealand home base and its expanding casino facilities in Adelaide.

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