CDL's New Zealand unit sells former hotel site to Catholic church

A SUBSIDIARY of mainboard-listed City Developments Limited (CDL), Millennium & Copthorne Hotels New Zealand (MCK), on Friday said it had reached an agreement for the sale of a plot of land at 776 Colombo Street in Christchurch to the Roman Catholic Diocese of Christchurch.

The 2,154-square metre freehold plot is the site of the former Copthorne Hotel Christchurch Central. In 2012, CDL recognised a gain on the disposal of the hotel - which was damaged by an earthquake in 2011 - following an insurance settlement.

The terms of the sale are confidential and settlement of the transaction will occur in late-May 2021. No further announcement or comment will be made by either party until settlement of the transaction in 2021, MCK said in a statement.

MCK managing director BK Chiu thanked the Bishop of the diocese and his representatives for "the constructive way in which negotiations were handled over the last few weeks".

"The Bishop also acknowledged MCK's cooperation to ensuring that the diocese's vision for the precinct on which the land is situated will now be able to be fully met," the company added.

Earlier this week, CDL subsidiary Millennium Hotels and Resorts announced it was slashing another 159 jobs - or about 15 per cent of its Singapore-based workforce - following earlier reductions in its foreign worker headcount over the course of this year.

CDL shares were trading at S$8.01 as at 1.15pm on Friday, up S$0.05 or 0.6 per cent.