SkyCity sells its head office in $74.5 million asset sale deal

Friday, 17 July 2026

Casino operator SkyCity has sold its Auckland head office as part of its plan to reduce debt and turn its fortunes around.

It told shareholders on Friday that the sale of the 99 Albert St office building, together with investment properties on Victoria St, had now gone unconditional.

The building was bought by Mainland Capital for $74,500,000 in a joint venture with Russell Property Group.

Mainland is a Christchurch-based commercial property manager that markets funds to wholesale and private investors.

Read more:

• SkyCity faces possible class action over losses through its online casino

• SkyCity’s Grand Hotel up for sale after high fuel prices force earnings downgrade

• SkyCity’s ‘trough’ year forecast proves accurate as revenue drops

The expected settlement date is September 1.

Jason Walbridge, SkyCity chief executive, told investors: “We are pleased that the sale of the commercial properties has progressed to an unconditional status.

“Mainland Capital shares our commitment to enhancing the precinct, and we look forward to working with them as valued neighbours,” he said.

“SkyCity will use the capital proceeds to repay debt and provide SkyCity with greater financial flexibility to navigate current market conditions,” he said.

The casino operator has just concluded its financial year, which ended on June 30, and on August 20 will reveal its full-year profit.

In May, the company said it was adding its Grand Hotel to its “asset monetisation” programme of sales, after high fuel prices further dragged on households’ ability to spend, forcing the company to issue an earnings downgrade.

The impact of squeezed household discretionary spending had been felt on both sides of the Tasman, and had been felt most keenly at its Auckland and Adelaide casinos, the company said.

Gamblers and other visitors to SkyCity’s entertainment complexes have been spending less on their visits.

Walbridge was hired by SkyCity two years ago to restore the company’s fortunes against the backdrop of continued weak consumer confidence, as well as self-inflicted woes.

His work has yet to lift SkyCity’s shares out of the doldrums. In May 2023 they traded at around $2.30, and over $3 in 2021, but on Friday they were worth just over 53 cents.

Its shares are owned by KiwiSaver funds but also private investors, including those who used to rely on its dividends to fund their retirements, however the company has temporarily paused dividends.

The company’s woes included falling foul of regulatory authorities in both Australia and New Zealand.

However, it now looked like the company has managed to placate Australian regulators.

In June it told shareholders it had entered into a non-binding heads of agreement with the Commissioner for Liquor and Gambling in South Australia to “record a basis to fully and finally resolve” its failures there.

The heads of agreement provided for a total fine of A$21 million together with enhanced governance, compliance and operational commitments for the Adelaide Casino.

Walbridge said it was an important step for SkyCity, and reflected the work it had done over the past four years to transform its compliance culture, strengthen governance, and earn back the trust of regulators.

It was the welcome news of 2026 for shareholders, who finally saw the opening of its International Convention Centre in Auckland in February following a decade of delays and disappointment.