Dreamworld owner sells marina portfolio
Troubled Ardent Leisure Group has sold its d’Albora Marinas business to Balmain Corporation and Goldman Sachs for $126 million.
The sale was above the $113 million book value but comes as the leisure company deals with the fallout of the fatal accident at its Dreamworld leisure park on the Gold Coast, parts of which reopened on Saturday.
Ardent announced in March it planned to sell the marinas to focus capital on expanding its entertainment centre business in the US.
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The d’Albora Marinas portfolio comprises seven high profile marinas located in premium locations.
The sale came after an elongated expression of interest sale process.
The sale price represents an 11% premium over current book value, reflecting the competitive nature of local and offshore bids.
The purchaser of the portfolio of marinas is a special purpose vehicle jointly owned by Sydney-based Balmain Corporation and Goldman Sachs.
The agreed sale price of $126 million represents a premium to current book value and will improve the balance sheet capacity of the group
McVay Real Estate brokered the sale.
The deal is expected to complete this financial year and depends on securing landlord consents for the transfer of the head leases.
Ardent incurred transaction costs of about $3.3 million on the sale and has made a commitment to complete about $5.6 million of pre-planned capital expenditure projects as part of the deal.
Ardent Leisure chief executive Deborah Thomas says: “the group’s decision to prepare d’Albora Marinas for sale with extended lease tenure, targeted capital works and a transparent sale process has ensured that the maximum value for investors has been realised”.
“The agreed sale price of $126 million represents a premium to current book value and will improve the balance sheet capacity of the group,” Thomas says.
The sale comes as Ardent continues to deal with the fallout from the death of four people on Deamworld’s Thunder River Rapids Ride in October.
This article originally appeared on www.theaustralian.com.au/property.