Village Roadshow to sell Gold Coast theme park land
Village Roadshow has put on the market the freehold real estate for its Gold Coast theme park hub – home to Warner Bros Movie World and Wet’n’Wild – for a deal that could fetch $100 million or more.
The listed entertainment company is proposing a sale and leaseback transaction with the prospective buyer, on an initial 30-year term.
Proceeds from the sale initially will be used to reduce Village Roadshow’s debt, allowing it to push ahead with its growth strategies, it said.
“We are committed to our Theme Parks business, with the DC Rivals HyperCoaster, the longest, highest and fastest rollercoaster in the southern hemisphere opening soon at Warner Bros Movie World, and Topgolf under construction,” said Clark Kirby, chief executive of Village Roadshow’s them parks division.
“This sale and leaseback will unlock the value in these land assets, allowing VRL to pay down debt and free up capital for growth initiatives such as Topgolf.”
The site will generate $6.2 million in rent from next year, with 3 per cent annual increases and lease options totalling 90 years.
The 154-hectare site is also home to Paradise Country, Australian Outback Spectacular, and Village Roadshow Studios and has development approval for a nine-storey hotel.
The move to sell off the Gold Coast site is part of a broader strategy to cut high debt levels announced in February.
As part of that strategy, the company is in talks to sell its 50 per cent stake in the Singapore cinema exhibition business, Golden Village.
Village Roadshow has appointed Colliers International to sell the Gold Coast site.
“There is nothing like this investment opportunity currently available in Australia,” said Colliers’ John Marasco.
“‘We expect interest from institutions, trusts and high net worth individuals worldwide, and are expecting offers in the region of $100 million.
“Village Roadshow Theme Parks is Australia’s leading theme park developer and owner. This is evident as their parks and attractions draw over five million local and overseas visitors annually.”
The entertainment operator has said earnings from its theme parks arm – previously its biggest revenue driver – have been hit by the fallout from the tragic deaths at Dreamworld, owned by another operator, Ardent Leisure.
“Based on overseas experience this will of course dissipate, but Village Roadshow is implementing dynamic initiatives led by recently appointed Theme Parks chief executive officer Clark Kirby that will accelerate this correction,” it said at its 2017 results this month.
