Village Roadshow (ASX:VRL) has signed an agreement to sell its wholly owned Wet‘n’Wild Water Park in Western Sydney to Parques Reunidos, for an amount of $40 million, plus a variable compensation that will depend on the Park’s revenue performance up to 30 June 2020.
The transaction is expected to complete in the first quarter of FY2019.
Parques Reunidos is one of the world’s leading leisure park operators based in Spain with a portfolio of over 60 entertainment assets around the world.
They operate 20 water parks around the world.
The net proceeds from the sale will be used to reduce Village Roadshows debt levels.
The sale will result in a pre-tax loss of approximately $25 million, which will be disclosed as a material item in the FY2018 results.
Shares in Village Roadshow (ASX:VRL) up 1.73 per cent to $2.35.