Main Event Entertainment Considering Sale Leaseback of Bowling Alleys in Texas

The Australian - August 29, 2006

Macquarie Leisure Trust has made its first offshore play, paying $59 million for six tenpin bowling alley complexes in Texas. Macquarie Leisure bought the centres through US-based private company Main Event Entertainment Holdings, and the deal includes paying the former directors of that company up to $8 million in "earn-out" fees, based on future profits.

"Main Event is one of the largest operators of indoor family entertainment centres in North America's southwest, with six established sites in Dallas, Fort Worth, Austin and Houston, Texas," the group said.

Each centre covers between 6000sqm and 8000sqm and includes a 28-lane tenpin bowling alley, restaurant, bar and arcade video games. Each centre also includes a "laser tag" facility, an electronic shooting game played by opponents wearing laser packs.

The group had bought the properties' freehold titles but would consider selling and leasing back those properties because the returns were better. Earnings before income tax, depreciation and amortisation would provide a 20 per cent return for the freehold complexes and about 47 per cent for leasehold complexes. Sphere: Related Content