Village sale to slash debt

STRUGGLING themepark operator Village Roadshow is selling 154ha of land on the Gold Coast in an attempt to raise at least $100 million to cut debt.

If sold, the massive Oxenford landholding, which hosts Movie World, Wet’n’Wild, Australian Outback Spectacular, Paradise Country and Village Roadshow Studios, will be leased back by Village.

The Melbourne-based company has been under pressure to cut its soaring debt via asset sales following a tough year, in which it announced a $66.7 million loss after a $15.7 million profit the previous year.

Village’s profit was hit hard by the tragedy at rival Ardent Leisure’s Dreamworld last year, which caused a sharp drop in visitor numbers and earnings at its own theme parks.

Co-chief executive Graham Burke called last financial year its “annus horribilis”.

Chief executive Clark Kirby said the land sale did not mean the company was backing away from investing in its theme parks.

“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 Movie World and golf attraction, Topgolf, which is under construction,” he said.

“This sale and leaseback will unlock value in these land assets, allowing Village to pay down debt and free up capital for growth initiatives such as Topgolf.”

The company said it hoped to finalise a sale by the end of

the year and have an agreement in place with the buyer to lease back the land for 30 years, paying $6.2 million in annual rent.

Its other terms included six 10-year options, meaning a total leasing period of 90 years.

Colliers International’s John Marasco, who is marketing the property with colleagues Simon Beirne and Darrell Irwin, said he expected strong interest from institutions, trusts and high-net worth individuals.

“There is nothing like this investment opportunity currently available in Australia,” he said.

“Village Roadshow Theme Parks is Australia’s leading themepark developer and owner. This is evident as their parks and attractions draw more than five million local and overseas visitors annually.”

Colliers will begin a national and international marketing campaign, which will include visits to Hong Kong and Singapore. Earlier this year Village sold 50 per cent of its stake in its Singapore cinema business for a profit of $160 million.