06/15/2021 | Press release | Distributed by Public on 06/15/2021 15:30
Entry into a Material Definitive Agreement
On June 9, 2021, Reading Property Group, the real property arm of the Registrant in Australia and New Zealand, entered into a Contract for the Sale and Purchase of Land and, that same day, completed the sale of its Auburn/Redyard shopping centre located at 98-100 Parramatta Road, Auburn, New South Wales, Australia (the 'Redyard Shopping Centre') to CPIF Red Yard Trust, an affiliate of Charter Hall Group (ASX:CHC) (the 'Purchaser') for a purchase price of $69.7 million (A$90.0 million). The Redyard Shopping Centre comprises approximately 92,000 rentable square foot of improvements located on approximately 11.9 acres of land, and includes a 10-screen Reading Cinema with TITAN LUXE, leased by a cinema affiliate of the Registrant (the 'Cinema Lease' and the 'Reading Cinemas' respectively). Carried by the Registrant at a book value of $30.2 million, the sale produced a pre-tax profit, after leasing commissions and costs to sell, of approximately $38.9 million.
The Purchaser has acquired the Redyard Shopping Centre subject to, and has assumed all of the obligations of the landlord under, the Cinema Lease. The Cinema Lease provides for market rental terms, however, as a part of the transaction and potential redevelopment plans of the Purchaser, the parties have agreed to certain termination and right of first refusal provisions.
Completion of Acquisition or Disposition of Assets
The information set forth above under Item 1.01 relating to the Registrant's sale of the Redyard Shopping Centre is hereby incorporated by reference into this Item 2.01.