Wellington’s Kirkcaldie & Stains has agreed to sell Harbour City Centre for $45.85 million.

The company will net $21.65 million from the sale to property investor Chao Zheng, according to the notice of special meeting of shareholders.

Kirkcaldie & Stains expect immediate net sale proceeds of approximately $16.9 million.

A further $4.75 million is to be paid on the settlement date anniversary.

Following the completion of the deal, the company expects that assets will be $38 million and liabilities $5 million, decreasing from $65 million and $28.7 million, respectively, at August 31, 2013.

“In the short term the sale proceeds will provide funds to apply to the retail business but the quantum of the proceeds provides an opportunity to consider a return of capital to shareholders. This will be kept under active consideration and reviewed in particular in light of the Christmas/New Year retailing performance,” the company said.

The Habour City Centre is on Lambton Quay, with three street frontages on Lambton Quay, Panama and Brandon Streets. It occupies approximately 3010sqm of land, and comprises a seven storey tower at the front, and a three level structure at the rear.

The tower has undergone significant refurbishment and remodelling over the past four years, including earthquake strengthening up to 100 per cent of the New Building Standard.

Country Road and Witchery are retail tenants of the tower.