Brierley acquires stake in Kirkcaldie

Sir Ron Brierley has acquired a stake in Wellington based retailer Kirkcaldie and Stains. Photo / Steven McNicholl

Sir Ron Brierley has emerged as a substantial shareholder of Wellington-based retailer, Kirkcaldie and Stains.

Brierley, who founded the 1980s and 90s corporate raider, Brierley Investments, said in a notice to the NZX today (Tuesday) that he had acquired a 5.72 per cent stake in Kirkcaldies.

Kirkcaldies has a store in the heart of Wellington's Golden Shopping Mile - Lambton Quay.

The company's market capitalisation is $30.7 million. Shares in the company last traded at $3 each.

In July, Brierley lifted his stake in ASX-listed India Equities Fund Ltd. to 14.8 per cent, suggesting he may be seeking a new vehicle for investments.

Brierley's emergence as a substantial holder of Kirkcaldie comes after another seasoned investor, former Brierley Investments chairman Selwyn Cushing and his son David Cushing, lifted their family's stake to 17.1 per cent.

At the time, David Cushing told BusinessDesk that he was attracted to the retailer's "prime Lambton Quay real estate", quality management and status as an iconic retailer.

Kirkcaldie owns the Harbour City Centre, a historic-six-floor retail and office building next door that is currently being earthquake strengthened. Property contributed EBITDA of $1.6 million in the first half, more than four times the earnings from retailing.

Cushing said while H&G's holding was creeping toward the 20 per cent level above which a full takeover could be triggered, the investment company wasn't in a hurry to move higher, and the stock was relatively illiquid.

- APNZ / BusinessDesk