Lion Nathan buys back Auckland site

Photo / Brett Phibbs

Brewing company Lion Nathan Pty has bought back the site of its former Newmarket, Auckland, brewery after the AMP Capital Investors investment fund that took full control failed to secure capital funding for redevelopment.

No sale price was announced, although the Overseas Investment Office cleared the investment fund, APEREF II, to buy the 40% it didn't already own for $12.2 million, in February 2008.

If that value held, the whole site would be valued at $30.6 million.

The Khyber Pass property has redevelopment plans and zoning permissions in place, with Lion Nathan planning to exit next year after running a brewery there since 1860. All brewing is moving to Lion Nathan's Ormiston Road plant.

"This is a good outcome for all parties, avoiding the possibility of an extended period of uncertainty. GNDL will now review its plans for the future development," said Lion Nathan national foods chief financial officer, Jamie Tomlinson.

"We are confident that GDNL will be able to attract good investment interest and that ultimately, the redevelopment of the site will be accomplished to the benefit of the local community and businesses."

There would "no adverse financial impact" for Lion Nathan New Zealand in the 2010 financial year, Tomlinson said.