Sale Of Mobil-On-The-Park For $66 Million

Published: Wed 21 Aug 2002 03:16 PM
August 21, 2002
Sale Of Mobil-On-The-Park For $66 Million
Statement made by Dr Alastair MacCormick, Chairman, Richina Pacific Limited
Richina Pacific has secured a conditional sale of its Wellington landmark building, the 25- level Mobil-on-the-Park retail, car parking and office tower.
The consideration is $66 million, and the purchaser is Navire Holdings Ltd.
We are delighted with the sale, which is now only conditional on the gaining of Richina Pacific shareholder consent.
Richina Pacific subsidiary, Midland Tower Company Limited, assumed ownership and development rights to Mobil-on-the-Park in 1995, when the original developer was unable to meet contractual obligations to another subsidiary, Mainzeal.
It has never been our intention to retain the development as a long term property investment as that is not our core business.
Over the years we have received a number of inadequate offers for the building, but were determined to receive fair value for the project, and the newly revived interest in the commercial property market has enabled us to do this.
At the time the Agreement was entered into, it was conditional upon:
- the purchaser being satisfied with the outcome of a due diligence investigation;
- the purchaser obtaining all necessary Oversees Investment Commission consents;
- the consent of the Bank of New Zealand to the transfer to the purchaser of the loan facility in respect of Mobil-on-the-Park (including the release of Richina Pacific from all obligations under that loan facility);
- a waiver by Mobil of its first right to purchase the building; and
- the approval of Richina Pacific’s shareholders under Listing Rule 9.1.1(b).
These conditions have now been satisfied, other than the condition relating to Richina Pacific’s shareholder approval.
Richina Pacific proposes to hold a Special Meeting of Shareholders on 9 September 2002 in order for shareholders to consider, and, if thought fit, approve the transaction. A Notice of Meeting, together with an Explanatory Statement, will be sent shortly to each shareholder.
The terms also provide for a $6 million deposit on the agreement becoming unconditional, and for a deferred settlement to take place on 30 June 2003. Midland will retain the net income until settlement.
Listing Rule 10.7.4 requires Richina Pacific to notify the NZSE upon entering into an agreement to sell assets, where the consideration to be received represents more than 10% of Richina Pacific’s Shareholders’ Funds.
At the time the Agreement was entered into, Richina Pacific believed the information was commercially sensitive and any publicity might be damaging to Richina Pacific and shareholders.
The Company sought and received a waiver from Listing Rule 10.7.4 from the New Zealand Stock Exchange, subject to Richina Pacific making a full announcement in compliance with Listing Rule 10.7.4 as soon as the due diligence condition was satisfied, or on Monday 26 August 2002 (whichever was the earlier).

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