SCY
07/08/2015 11:36
ASSET
PRICE SENSITIVE
REL: 1136 HRS Smiths City Group Limited
ASSET: SCY: Smiths City Colombo Street Property, Christchurch
7 August 2015
SMITHS CITY COLOMBO STREET PROPERTY, CHRISTCHURCH
As advised to the shareholders of Smiths City Group Limited in its annual
report for the year ending 30 April 2015, the directors have engaged Colliers
International to investigate market interest in the Colombo Street property
including the possible sale and lease back of the property.
The company is pleased to advise that Smiths City Properties Limited (one of
its subsidiaries) and the owner of the Colombo Street property has entered
into a conditional agreement to sell that property. In addition Smiths City
(Southern) Limited (another of its subsidiaries) and the main retail trading
arm of the Group has conditionally agreed to enter into a lease in respect of
the property from the new purchaser.
In terms of the sale the subject property is located at 550 Colombo Street,
Christchurch. The sale price is $20 million plus GST. Settlement will be 18
September 2015 conditional on satisfaction of the further terms in the
agreement. There is a due diligence condition and lease approval condition
both inserted for the benefit of the purchaser within 10 working days. The
agreement also contains conditions requiring the approval of the transaction
as a major transaction by both vendor Smiths City Properties Limited and the
shareholders of Smiths City Group Limited. In terms of the latter approval,
this will be put to shareholders of Smiths City Group Limited at its annual
general meeting to be held on Tuesday 25 August 2015 in Christchurch.
With regard to the lease the commencement date is to be aligned with
settlement of the property and rental is $1.409 million per annum plus GST
and outgoings. The initial term is for 12 years with two further rights of
renewal of six years each.
This transaction is also subject to the approval of Smiths City (Southern)
Limited and the shareholders of Smiths City Group Limited as major
transactions.
ROY CAMPBELL
CHIEF EXECUTIVE OFFICER
0272239574
End CA:00268077 For:SCY Type:ASSET Time:2015-08-07 11:36:28
