CNL Income Properties Agrees to $301 Million Sale Leaseback of 28 Golf Course Properties

SEC Edgar Database - December 6, 2007

We entered into an asset purchase agreement on October 29, 2007 committing to acquire 28 golf course properties from American Golf Corporation and certain of its affiliates (collectively “AGC”) for a purchase price of $301.0 million. On November 30, 2007, we completed the acquisition of 22 of those golf course properties for a purchase price of $244.0 million.

We leased our interests in these properties on a long-term, triple-net basis to Evergreen Alliance Golf Limited, L.P. (“EAGLE”) to operate on our behalf. The leases have a 20-year initial term, with four 5-year renewal options and are cross-defaulted with each other and with the 15 other leases for our golf course properties that are operated by EAGLE. The minimum aggregate annual rent for the properties is approximately $20.7 million in the initial year (i.e. an 8.5% cap rate.)

We have agreed to acquire the remaining six properties, all of which are leasehold interests, by April 17, 2008. Sphere: Related Content