SALE OF FEDERAL STREET CAR PARK

10 May 2018

Client Market Services
NZX Limited
Level 1, NZX Centre
11 Cable Street
WELLINGTON

Copy to:

ASX Market Announcements
Australian Stock Exchange
Exchange Centre
Level 6
20 Bridge Street
Sydney NSW 2000
AUSTRALIA


Dear Sir/Madam


RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)
SALE OF FEDERAL STREET CAR PARK

Please find attached an announcement concerning the sale of the Federal Street
car park in Auckland.


Yours faithfully


Jo Wong
Company Secretary

MARKET RELEASE

10 May 2018

SALE OF FEDERAL STREET CAR PARK

SKYCITY Entertainment Group Limited (“SKYCITY”) has today announced that it
has signed an unconditional agreement to sell the Federal Street car park, in
Auckland, for $40 million to ICD Property Investment Limited (“ICD”). The
Federal Street car park is a 427 space car park proximate to the SKYCITY
Auckland casino, hotel and hospitality precinct.

ICD was selected as the preferred purchaser following a competitive tender
process managed by Colliers, and signed a conditional agreement in late April
2018. The conditions of this agreement have now been satisfied.

The key terms of the sale agreement with ICD are:

• Purchase price: $40 million (cf. book value of $22 million)

• Deposit: 10% of the purchase price

• Settlement: 12 months from the date of the sale agreement (i.e. late
April 2019)

The sale of the Federal Street car park is consistent with SKYCITY’s intention to
move to an “asset-lighter” strategy which includes looking to divest non-core
assets and businesses. The proceeds of the sale will be used, initially, to pay
down debt and then fund future growth opportunities as they arise.

The car park is currently occupied by SKYCITY staff that will be moved to the New
Zealand International Convention Centre (“NZICC”) car park when the first
tranche (~600 spaces) is completed. Following this, SKYCITY intends to operate
the Federal Street car park for casual visitors and leaseholders through to
settlement of the transaction with ICD.

For more information contact:





Media
Colin Espiner
GM, Communications
DDI: +64 9 363 6467
Mobile: +64 27 5046294
Email: colin.espiner@skycity.co.nz

Investors & analysts
Ben Kay
GM, Corporate Development &
Investor Relations
DDI: +64 9 363 6067
Email: ben.kay@skycity.co.nz