Stamford Land has issued a clarification on the property sale price for the disposal of its property in Auckland, New Zealand.
On Oct 10, the company announced that had proposed to dispose of its property, Stamford Plaza Auckland, at 22 – 26 Albert Street in New Zealand for NZ$152.0 million ($123.0 million). The company had also proposed to dispose of its business assets for NZ$18.0 million.
In its clarification statement on Oct 19, the company said that the sale price of the property represented an excess of $74.4 million over the property’s book value, which was at $48.5 million as at March 31. It added that the $50.0 million mentioned in its initial announcement represented the expected net gain based on the property’s book value as at the date of completion.
The sum is made after the deduction of expenses in connection with the proposed property disposal.
Further to its statement, Stamford Land reiterated that there was no bidding process, but that the buyer had offered to acquire the property through an expression of interest (EOI).
“As agreed with the ultimate purchaser, the acquisition of the property was not subject to shareholders approval, and the parties to the transactions had agreed to enter into definitive agreements on or about Sept 28,” says Stamford Land.
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Shares in Stamford Land closed at 36.5 cents on Oct 19.
