Morning Advertiser - January 22, 2007
Luminar has announced it has completed the sale of its entertainment division and 31 non-core units in a deal worth £95.8m.
The company has sold a total of 67 units in its entertainment division, including 54 Chicago Rock Cafés and 13 Jumpin Jaks. Twenty of the freehold sites and one long leasehold property have been sold to a new company called NewCo in a non-recourse sale and leaseback deal worth £76.8m, while the remaining sites have been sold to NewCo subsidiaries for £19m.
Under the terms of the deal Luminar will take a 49% stake in NewCo, while Management, a company led by David Crabtree, current managing director of the entertainment division, will have a 31% stake, with the remaining 20% owned by property group Prestbury. The sites will be leased back to Luminar on 30-year leases.
Luminar’s existing management team will run the clubs, and the group said it expects the completed deal to return around £3m-worth of head office cost savings. The company said that any surplus funds generated from the deal will be returned to shareholders.
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Wednesday, January 24, 2007
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