Sky confirms sale of Mt Wellington properties for $56m

Sky New Zealand
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New Zealand

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16 December 2021
Sky confirms sale of Mt Wellington properties for $56 million
Following a competitive bidding process, Sky Network Television (NZX/ASX: SKT) has today entered
into a conditional agreement with Goodman Property Trust (GMT), for the sale of the three
properties comprising Sky’s Mt Wellington campus for a consideration of $56 million.
The sale is conditional on GMT completing further due diligence, including engineering and
environmental assessments, and then on final approval by the board of Goodman (NZ) Limited (the
manager of GMT). Taking into account the Christmas shutdown period, we anticipate that these
conditions precedent will be satisfied by mid-February 2022, with cash settlement expected to occur
in early March 2022.
The agreement includes a ten-year leaseback of the building known as Studio One, comprising Sky’s
core production and technology facilities. There is also a five-year right of renewal, and an option for
Sky to exit any time after five years. A one-year leaseback has also been negotiated over the building
known as Studio Three to allow the migration of staff, and Sky’s warehouse and decoder workshop,
from that building. The third building, known as Studio Two, has been sold as vacant. The annual
rental of Studio One at commencement of the lease will be $1.645m p.a., which is then subject to
standard market annual fixed rent reviews and a rental review at renewal. The one-year rental of
Studio Three will be $1.010m p.a.
Sky CEO Sophie Moloney commented: “The sale of Sky’s Mt Wellington properties is consistent with
our strategy of recycling capital to initiatives that create value for customers and shareholders. It
also reflects our desire to significantly downsize our Mt Wellington footprint and have a presence in
a central Auckland site, to facilitate our approach that enables many of our crew to match the
nature of the work they do to the environment they need to be the most productive.”
As previously advised, the Board is reviewing Sky’s capital structure and has mandated external
financial, legal and tax advisers to assist in determining the most appropriate capital management
strategy, including future dividend policy. The outcome of this review will be announced when Sky
reports first half results on 24 February 2022, subject to Board approval and the successful
completion of the property sale.
ENDS
Authorised by James Bishop, Company Secretary
Investor queries to: Media queries to:
James Bishop Chris Major
Company Secretary Chief Corporate Affairs Officer
+64 21 630 635 +64 29 917 6127
james.bishop@sky.co.nz chris.major@sky.co.nz