Roxy-Pacific not proceeding with commercial building buy after due diligence

ROXY-PACIFIC Holdings on Tuesday updated on its earlier announced proposed acquisition of a New Zealand property, saying that after performing due diligence investigation of the property, it is "not satisfied" that the property is suitable for its requirements, and will not be proceeding with the deal.

The property and hospitality group had on Nov 30 said that it was buying a commercial building in Auckland for NZ$72.55 million (S$68.2 million) excluding taxes. The deal was to be funded with internal resources and bank loans, and NZ$3.69 million will be paid as deposit upon the completion of due diligence.

The property at 280 Queen Street in Auckland's central business district comprises 11 levels of office space, three levels of retail space and secure off-street parking for 48 cars. The total site area is 2,253 square metres, with a net lettable area of 14,690 sq m.

Roxy-Pacific described the property at the time as "a prime investment opportunity" with the "potential to be a stable source of rental income" for the group. 

On Tuesday evening, it said in a filing to the Singapore Exchange: "The termination of the proposed acquisition is not expected to have a material impact on the group's consolidated earnings and net tangible assets per share of the company for the financial year ending Dec 31, 2019."