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Mystery Kirkcaldie building bidder misses due diligence deadline

An unnamed bidder for the Harbour City Centre building owned by upscale Wellington retailer Kirkcaldie & Stains has missed a deadline for confirming it was satisfied with due diligence and the agreement could be terminated if an extension is not sought.

The Harbour City Centre building is valued at $46.55 million, according to the company's 2012 annual report published last month, below the $48.65 million estimate made a year ago once earthquake strengthening and refurbishment was completed.

Kirkcaldie put the difference down to rising insurance premiums.

Still, the building's value easily eclipses the unprofitable retailer's entire market capitalisation of $31 million, a value gap that has attracted investors including corporate raider Ron Brierley and former Brierley Investments chairman Selwyn Cushing's family.

Kirkcaldie first flagged the sale of the building on October 26, conditional on the purchaser completing and confirming satisfaction with due diligence by 5pm on November 30.

"The company has not received confirmation from the purchaser that this condition has been satisfied," it said today. "The conditional contract remains in place. However, it may be terminated by either party on written notice to the other party, unless a formal extension of the condition is agreed."

Details of the transaction remain confidential, it said.

Shares of tightly held Kirkcaldie last traded unchanged at $3.05 and have jumped 17% since the conditional sale was announced in October.

(BusinessDesk)

Comments and questions

This is a blue chip property. Why sell it with interest rates staying so low for quite a few years? The best property in L Quay.

Useless board.
They should cancel the contract and take the high ground.
Best property on Lambton Q and never should have been sold in first place.

A case of post contractual remorse: Buyer wants out.

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