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shaggyolsen
Joined: Feb 2006
Posts: 29
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If six flags keep selling that are going to be out of Business
and i wood hate that.
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| 1/11/2007 12:55 PM |
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Wes
Joined: Sep 2001
Posts: 10886
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They aren't going to sell off all the parks and go out of business.
If they no longer wanted to be in the industry, then would have sold out a long time ago.
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| 1/11/2007 1:00 PM |
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Chip
Joined: Jun 2001
Posts: 7137
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Yay for Magic Mountain not being sold. Boo for Elitch's being sold.
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| 1/11/2007 1:10 PM |
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paboy
Joined: Nov 2005
Posts: 17
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Six Flags has done Elitch's no favors over the past few seasons. I think this can only be good news for them! They were not a good fit for Six Flags and vice versa. I am just glad that it will remain an amusement park.
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| 1/11/2007 1:45 PM |
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coastercrazy68
Joined: Aug 2006
Posts: 55
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What will happen to Darien Lake? No Superman!!!
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| 1/11/2007 2:22 PM |
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Wes
Joined: Sep 2001
Posts: 10886
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^ Dominator: The Ride. LOL
Hopefully something better than that.
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| 1/11/2007 2:52 PM |
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Jerry S
Joined: Aug 2003
Posts: 5046
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Read, people. It said Six Flags will lease the parks from the company they are selling them to.
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| 1/11/2007 3:26 PM |
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Roller8652
Joined: Jan 2006
Posts: 117
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FINALLY! My park is saved from big mean old SF
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| 1/11/2007 4:40 PM |
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CHILLERLC1
Joined: May 2001
Posts: 7399
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Good point Jerry. Perhaps the Season Pass will still be good at some of these places. Enchanted Village and Frontier were already excluded from entry with the SF pass. Would we still expect to see Elitch Gardens and Darien Lake on the SF site still but with their demoted name status? Elitch I thought never deserved to be flagged due to its size but for marketability in a large metro area I could see why.
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| 1/11/2007 5:02 PM |
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BryanWood
Joined: May 2001
Posts: 4009
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Jerry is WRONG. Six Flags is selling the parks completely. PARC-7F Corp. will be buying them and leasing them from a real estate company.
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| 1/11/2007 5:43 PM |
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Mrceagle
Joined: Sep 2002
Posts: 1910
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Jerry S and Chiller. You both may want to reread the article because you both seem lost. SFI will no longer own or operate these properties. PARC is Buying the parks from SFI. they will then sell them to CNL. CNL will leases the parks to PARC.
personally I find this a bit overkill. Why buy the parks just to sell them and lease them. It removes the debt but leaves the parks in the hands of developers who may in the future opt to turn these parks into something else.
But it's nice to see the sale, well we or won't we, over. Also I'm pretty sure that means CF is the largest park chain now.
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| 1/11/2007 5:58 PM |
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Chris L
Joined: May 2001
Posts: 7358
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7 properties for $312 million? That's it?
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| 1/11/2007 6:18 PM |
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Wes
Joined: Sep 2001
Posts: 10886
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^ Yeah that comes out to an average of $44 Million per park. Quite a steal.
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| 1/11/2007 8:02 PM |
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vedved82491
Joined: May 2006
Posts: 912
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Hey at least its helping SFI get back on track. It's better to have a fewer parks running smoothly, than having many parks running in havoc. I expect to see SFI doing major changes now that it's reduced its debt. It's gonna help out the parks that need it most. Magic Mountain might be able to have enough employment as well as a budget for X, perhaps get rid of Flashback/Renew it, and take out Metro...maybe even a nice decent THRILLING flat. As for other parks, perhaps they'll get new coasters, or at least something new. It's gonna be a good year.
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| 1/11/2007 9:34 PM |
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CHILLERLC1
Joined: May 2001
Posts: 7399
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About the value good point. If they after one season decide to have another sale of properties I can imagine there will be more blood, more money with the bigger cash cow of properties they have left.
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| 1/11/2007 10:44 PM |
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ridemaster
Joined: Oct 2006
Posts: 38
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Mrceagle wrote:
"personally I find this a bit overkill. Why buy the parks just to sell them and lease them. It removes the debt but leaves the parks in the hands of developers who may in the future opt to turn these parks into something else. "
That sir, is the crux of what just really happened - PARC has made a risk free deal in which they will attempt to operate parks for a fixed amount of time (say 10 years) in an attempt to make as much cash as possible. This is a lease deal, so they will pay the owners (CNL) a set fee (probably w/incentives) to operate the parks. At the end of that lease, the owners have the option, if either the operators have not made enough money for them or if the real estate value has increased even more, to close the parks and redevelop them. That being said, the parks will be safe for a few years, and as long as they continue to perform, they should be around for a long time. But the minute real estate value gets too high - well, watch out.
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| 1/12/2007 1:47 AM |
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ridemaster
Joined: Oct 2006
Posts: 38
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Some additional info on CNL, they own a diverse portfolio of entertainment/retail/leisure properties including a couple great wolf lodges, hawaiin falls waterparks, and the ski lift in gatlinburg, tn....so they are in the game for the long haul
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| 1/12/2007 3:16 AM |
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Joseph
Joined: Aug 2005
Posts: 1285
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This is highly disappointing, it won't raise nearly enough capital. I think they should have dumped Magic Mountain too, heck, even if they sold it for real estate development, it would have made more than yesterday's transaction, yet alone if sold as a park...
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| 1/12/2007 9:12 AM |
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mikey53
Joined: Mar 2004
Posts: 243
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This particular transaction is to be applied to the debt payoff, and if you have a credit card of any kind you'll know that this will also reduce the intrest that you'll have to pay. This should ultimately get the company in a position to where it's payments will become more managable.
From what I've come to understand, Magic Mountain alone would have fetched around 500 to 800 million. I for one am very happy to see Magic Mountain stay part of the chain. It is very profitable, an Icon to the Valencia area, and I believe the only real thrill park in the Southern California area, (Knott's doesn't count to me because it's so small with a very limited supply of rides that I like.)
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| 1/12/2007 11:05 AM |
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Mrceagle
Joined: Sep 2002
Posts: 1910
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Vedved82491 "It's gonna help out the parks that need it most. Magic Mountain might be able to have enough employment as well as a budget for X, perhaps get rid of Flashback/Renew it, and take out Metro...maybe even a nice decent THRILLING flat. As for other parks, perhaps they'll get new coasters, or at least something new. It's gonna be a good year."
This money isn't for operations. It's to bay down the debt. They have no choice in the mater. if you recall back when they couldn't make there payment they made that deal. so whatever money was given to the park is what there getting. they won't get more because of this sale.
ridemaster - I know how a lease works. I know how it can be the best way to operate some parks. SFKK is operated of a lease as is SFNO. It's the buy, sell then lease. Why didn't CNL make the initial sale and allow PARC to lease the properties and run them. Cut out the middle man so to say. also I personally don't like the idea of a developer holding the properties because of that "It's not right were we want it lets build Condos" attitude most seem to have. or they simply feel it should be Condos not unlike Trump with Steel Pier.
SFMM - No one wanted it. Not at the price it would take to buy it. every bid put in excluded SFMM. SFMM has some good coasters but not much else. so on top of the 500 + million you have allot of cleaning to do. adding flats. chances are removing 2-3 coasters to present a major change in park focus.
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| 1/13/2007 2:50 PM |
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More about Industry Announcements
Jan. 11th, 2007 -- Six Flags Inc. has agreed to sell seven of its theme parks for $312 million to PARC 7F-Operations Corp. of Jacksonville. Its chairman is Michael Jenkins, is a former vice president of Six Flags over Texas.