Six Flags Theme Parks Enters $312 Million Sale Leaseback of Seven US Theme Parks

CNL Income Properties Web Site - January 11, 2007

CNL Income Properties Inc., a real estate investment trust focused on lifestyle properties, announced today it has entered into a series of related sale and leaseback agreements to acquire seven Six Flags Inc. properties.

CNL Income Properties intends to acquire the properties in a $312 million asset purchase agreement consisting of $290 million in cash and a note receivable for $22 million. The note has a term of 10 years, annual principal payments of $1.7 million and an interest rate of 8.75%. An affiliate of PARC Management, LLC entered into a related $312 million stock purchase agreement on Jan. 10, 2007 to purchase the properties from Six Flags.

CNL Income Properties in turn will purchase and lease back the properties to PARC Management, which will operate the seven parks under a long-term, triple-net lease agreement. The leases for the Parks are expected to have initial terms through December 2029 and three 10-year renewal options. The minimum annual rent for the leases for the Parks is expected to be approximately $26.9 million (9.3% cap rate) in the initial year. Additional rent is expected to be a negotiated percentage of incremental total revenue over a threshold. All leases will be cross-defaulted.

The transaction is expect to close on or prior to March 31, 2007. Sphere: Related Content