SkyCity CEO Jason Walbridge Plans NZ$200 Million Asset Sales, Retains Hotels; NZ Retail Sales Up 0.5% Q2, PM Luxon Supports RBNZ Cut

SkyCity Entertainment Group is facing pressure to raise capital to avoid breaching its bank covenants, according to CEO Jason Walbridge. The company is considering asset sales, although these efforts have not yet been successful. SkyCity plans to sell NZ$200 million worth of assets over the next 12 to 18 months but intends to retain ownership of critical assets such as hotels and convention centers, which are central to its strategy. Meanwhile, New Zealand's economic data showed retail sales excluding inflation increased by 0.5% quarter-on-quarter in the second quarter, surpassing forecasts of a 0.3% decline. Prime Minister Christopher Luxon expressed personal agreement with the Reserve Bank of New Zealand's (RBNZ) decision to cut the Official Cash Rate by 50 basis points last week. RBNZ Associate Governor Angus McGregor noted that the bank paid close attention to submissions from the banking inquiry. RBNZ Governor Adrian Orr previously described the second quarter economic weakness as a short-term phenomenon.