Posted Wednesday, March 28, 2007 10:17 AM | Contributed by Jeff
Magic Springs Development Co. LLC announced Tuesday that it has signed an agreement to sell its Hot Springs amusement park to a real estate investment trust. CNL Income Properties Inc. of Orlando, Fla., will close on the purchase on or before April 30. It will then lease Magic Springs & Crystal Falls back to Magic Springs Development, which will continue to run the park. The developers will sign a 20-year lease, and no changes in management or staffing are expected.
Read more from The Arkansas Democrat Gazette.
1. Real Estate Investment Trusts (REITs) are always looking for income producing properties for return on the dollar. A nice 20 year lease on an income producing amusement park seems a relative safe risk for return on investment. Especially when you own the land in a tourist area.
2. The park (management company) gets a quick infusion of cash for capital improvements at a better rate than they could get from a comercial bank.
This is WIN/WIN!
P.S. Hedge Funds are no longer the investment tool of the absurdly rich. A lot of money is tied up in private equity investment firms. A lot of public Vegas casinos for example...are starting to get bought up by private invesment groups looking for a better return on investment than thy can get playing stocks.
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