Village Roadshow's Theme Parks division has announced its sale and long term leaseback intentions for 154 hectares on the Gold Coast which currently holds well-known theme park facilities.
The site includes the land on which Warner Bros. Movie World, Wet’n’Wild Gold Coast, Paradise Country, Australian Outback Spectacular, and Village Roadshow Studios are located. In addition, Australia’s first Topgolf venue is under construction at the site, and development approval is in place for a nine storey hotel.
The landholding offers direct Pacific Motorway access and visibility, and is situated approximately 20 kilometres from Surfers Paradise and 50 kilometres from Brisbane.
The site is being sold by Colliers International through an international expressions of interest campaign and will be marketed nationally and throughout Asia. International expressions of interest close on 26 October 2017, with a sale expected to be completed by the end of the year.
The proceeds of the sale will initially be used to reduce VRL’s debt levels, while allowing VRL to progress its previously announced growth strategies.
Village Roadshow chief executive Clark Kirby said the sale and leaseback will unlock the value in these land assets, allowing VRL to pay down debt and free up capital for growth initiatives such as Topgolf.
“We are committed to our Theme Parks business, with the DC Rivals HyperCoaster, the longest, highest and fastest rollercoaster in the Southern Hemisphere opening soon at Warner Bros. Movie World, and Topgolf under construction," he said.
Colliers International Managing Director Capital Markets John Marasco said interest was expected from institutions, trusts and high net worth individuals worldwide, and offers were expected in the region of $100 million.
“Village Roadshow Theme Parks is Australia’s leading theme park developer and owner," Marasco said.
"This is evident as their parks and attractions draw over five million local and overseas visitors annually.
“The offer is for a substantial landholding with an experienced operator in the midst of strong underlying economic, population and tourist growth projections for the region."The site will generate $6.2 million from next year, with a 30 year initial term. Annual rent review increases are three per cent with six further terms of 10 years' each, totalling 90 years.