Reading International reports sale of Wellington Assets in NZ
Reading International (NASDAQ: RDI) has announced an agreement to sell its Wellington, New Zealand properties to Prime Property Group for NZ$38 million. The transaction is expected to close in Q1 2025.
The agreement includes plans for Prime Property Group to conduct seismic upgrades to the Courtenay Central building, followed by a long-term cinema lease arrangement with Reading Cinemas Courtenay Central Reading intends to renovate and reopen its existing cinema in the building, which has been temporarily closed since early 2019 due to seismic concerns.
Reading International (NASDAQ: RDI) ha annunciato un accordo per vendere le sue proprietà a Wellington, Nuova Zelanda, al Prime Property Group per 38 milioni di dollari neozelandesi. La transazione dovrebbe chiudersi nel primo trimestre del 2025.
L'accordo prevede piani per il Prime Property Group di effettuare aggiornamenti sismici all'edificio Courtenay Central, seguiti da un contratto di locazione cinematografica a lungo termine con Reading Cinemas Courtenay Central. Reading intende ristrutturare e riaprire il suo cinema esistente nell'edificio, che è stato temporaneamente chiuso dall'inizio del 2019 a causa di preoccupazioni sismiche.
Reading International (NASDAQ: RDI) ha anunciado un acuerdo para vender sus propiedades en Wellington, Nueva Zelanda, al Prime Property Group por 38 millones de dólares neozelandeses. Se espera que la transacción se cierre en el primer trimestre de 2025.
El acuerdo incluye planes para que Prime Property Group realice mejoras sísmicas en el edificio Courtenay Central, seguido de un contrato de arrendamiento a largo plazo para el cine Reading Cinemas Courtenay Central. Reading tiene la intención de renovar y reabrir su cine existente en el edificio, que ha estado temporalmente cerrado desde principios de 2019 debido a preocupaciones sísmicas.
리딩 인터내셔널 (NASDAQ: RDI)는 뉴질랜드 웰링턴의 부동산을 프라임 프로퍼티 그룹에 3800만 뉴질랜드 달러에 판매하기로 합의했다고 발표했습니다. 이 거래는 2025년 1분기에 종료될 것으로 예상됩니다.
이 협정에는 프라임 프로퍼티 그룹이 커텐레이 중앙 건물에 대해 지진 개선 작업을 수행하고, 이후 리딩 시네마 커텐레이 중앙과 장기 영화 관람 계약을 체결할 계획이 포함되어 있습니다. 리딩은 이 건물 내에 있는 기존 영화를 리모델링하고 재개장할 계획이며, 이 영화관은 2019년 초부터 지진 우려로 인해 일시적으로 폐쇄되었습니다.
Reading International (NASDAQ: RDI) a annoncé un accord pour vendre ses propriétés à Wellington, Nouvelle-Zélande, au Prime Property Group pour 38 millions de dollars néo-zélandais. La transaction devrait se conclure au premier trimestre 2025.
L'accord inclut des plans pour que le Prime Property Group effectue des mises à niveau sismiques du bâtiment Courtenay Central, suivi d'un contrat de location de cinéma à long terme avec Reading Cinemas Courtenay Central. Reading envisage de rénover et de rouvrir son cinéma existant dans le bâtiment, qui a été temporairement fermé depuis début 2019 en raison de préoccupations sismiques.
Reading International (NASDAQ: RDI) hat eine Vereinbarung bekannt gegeben, seine Immobilien in Wellington, Neuseeland, an die Prime Property Group für 38 Millionen Neuseeland-Dollar zu verkaufen. Die Transaktion wird voraussichtlich im ersten Quartal 2025 abgeschlossen.
Die Vereinbarung umfasst Pläne für die Prime Property Group, seismische Upgrades am Gebäude Courtenay Central durchzuführen, gefolgt von einem langfristigen Kinomietvertrag mit Reading Cinemas Courtenay Central. Reading plant, sein bestehendes Kino im Gebäude zu renovieren und wieder zu eröffnen, das seit Anfang 2019 aufgrund seismischer Bedenken vorübergehend geschlossen ist.
- Sale of Wellington properties for NZ$38 million strengthens balance sheet
- Long-term cinema lease agreement secures continued presence in Wellington market
- Seismic upgrade costs to be covered by buyer (Prime Property Group)
- Planned reopening of previously closed cinema location expands operational footprint
- Loss of property ownership in Wellington market
- Property has been non-operational since 2019, indicating extended period of lost revenue
Insights
The
The deal structure is clever - by selling the property but securing a long-term lease commitment, Reading maintains its cinema operations while unlocking capital that can be reinvested or used to reduce debt. This arrangement allows Reading to continue generating operational revenue without the associated property maintenance and upgrade costs. The timing is strategic, coming when New Zealand's commercial real estate market has shown resilience despite global economic uncertainties.
For a company with a market cap of
This transaction significantly de-risks Reading International's balance sheet in multiple ways. First, it eliminates the seismic liability risk associated with the Courtenay Central building, transferring this responsibility to Prime Property Group. Second, it provides substantial cash injection relative to the company's current market value, potentially improving their debt-to-equity ratio and overall financial health.
The lease-back structure maintains operational continuity while reducing property-related risks. This is particularly important in a seismically active region like Wellington, where property upgrade requirements can be substantial and unpredictable. The deal effectively transforms a capital-intensive property ownership model into a more flexible operational lease model, reducing fixed asset exposure while preserving revenue-generating capabilities.
NEW YORK, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Reading International, Inc. (NASDAQ: RDI) (“Reading” or our “Company”), an internationally diversified cinema and real estate company with operations and assets in the United States, Australia, and New Zealand, today announced it has entered into an unconditional Sale and Purchase Agreement to sell its properties in Wellington, New Zealand to Prime Property Group (“Prime”) for a purchase price of NZ
The Sale and Purchase Agreement contemplates the seismic upgrade of the Courtenay Central building by Prime and, thereafter, a long-term cinema lease by Reading Cinemas Courtenay Central Limited. The Company intends to renovate and reopen its existing cinema in the Courtenay Central building, which the Company, prioritizing the safety and wellbeing of Wellingtonians, temporarily closed in early 2019 due to seismic concerns.
About Reading International, Inc.
Reading International, Inc. (NASDAQ: RDI), an internationally diversified cinema and real estate company operating through various domestic and international subsidiaries, is a leading entertainment and real estate company, engaging in the development, ownership, and operation of cinemas and retail and commercial real estate in the United States, Australia, and New Zealand.
Reading’s cinema subsidiaries operate under multiple cinema brands: Reading Cinemas, Consolidated Theatres and the Angelika brand. Its live theatres are owned and operated by its Liberty Theaters subsidiary, under the Orpheum and Minetta Lane names. Its signature property developments, including Newmarket Village in Brisbane, Australia, and 44 Union Square in New York City, are maintained in special purpose entities.
Additional information about Reading can be obtained from our Company's website: http://www.readingrdi.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains a variety of forward-looking statements as defined by the Securities Litigation Reform Act of 1995, including those related to (i) our expectations about the closing of the sale of our Wellington property assets and the subsequent lease of the existing cinema at Courtenay Central; and (ii) our intentions regarding the renovation and reopening of our existing cinema in the Courtenay Central building. You can recognize these statements by our use of words, such as “may,” “will,” “expect,” “believe,” “intend” and “anticipate” or other similar terminology.
Given the variety and unpredictability of the factors that will ultimately influence our businesses and our results of operation, no guarantees can be given that any of our forward-looking statements will ultimately prove to be correct. Actual results may differ materially from those indicated in the forward-looking statements and there is no guarantee as to how our securities will perform either when considered in isolation or when compared to other securities or investment opportunities.
Forward-looking statements made by us in this release are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to publicly update or to revise any of our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law. Accordingly, you should always note the date to which our forward-looking statements speak.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those factors discussed throughout Part I, Item 1A – Risk Factors – and Part II Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations – of our Annual Report on Form 10-K for the most recently ended fiscal year, as well as the risk factors set forth in any other filings made under the Securities Act of 1934, as amended, including any of our Quarterly Reports on Form 10-Q, for more information.
For more information, contact:
Gilbert Avanes – EVP, CFO, and Treasurer
Andrzej Matyczynski – EVP Global Operations
(213) 235-2240
FAQ
How much is Reading International (RDI) selling its Wellington properties for?
When will RDI complete the sale of its Wellington properties?
Why was the Reading Cinemas Courtenay Central location closed in 2019?
What are the terms of RDI's future cinema operations in Wellington?
Will Reading International continue to operate cinemas in Wellington after the property sale?
