Remarkables Residences – the subsidiary of real estate developer GYP properties – has entered an agreement with Classic Developments for the sale of part of the land parcel at 1, Corner of Shearers Road and Munro Road, Frankton at Queenstown, New Zealand for NZ$15 million ($14.2 million).
The gain on disposal is estimated at $3.1 million, based on the consideration price of $14.2 million.
The consideration was arrived at “after arm’s length negotiations with the purchaser on a willing-buyer and willing-seller basis,” GYP says in an Aug 4 regulatory filing.
The board says the sale allows it to record a gain on completion and recycle the equity for its projects in Auckland, which is seeing strong property demand. These projects are in Pakuranga Plaza and Bellfield, Papakura.
The land parcel spans approximately 16,469 sq metres. The group will be retaining 6,753 sq metres of land in Frankton, Queenstown so it can participate in the property market there.
Shares in GYP properties closed flat at 14.8 cents on Aug 4, before the announcement.
