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Entertainment Properties Trust Announces Theatre Acquisitions, Lease Renewals, and Winery Transaction

^{Published on 2010-06-14 05:50:36 - Market Wire}
 

KANSAS CITY, Mo.--([ BUSINESS WIRE ])--Entertainment Properties Trust (NYSE:EPR) today announced that it has completed the acquisition of the real estate and improvements associated with twelve theatres for a purchase price of approximately $124 million. The portfolio properties are located in Colorado, California, Indiana and Texas and consist of 192 screens on approximately 139 acres. All of the theatres are leased to Cinemark U.S.A., Inc. pursuant to triple-net, cross-defaulted leases.

Cinemark USA, Inc., is a leading domestic and international motion picture exhibitor, operating 423 theatres with 4,884 screens in 39 U.S. states, one Canadian province, Brazil, Mexico and 11 other Latin American countries as of March 31, 2010.

The Company also received notification from AMC Entertainment, Inc., that it intends to exercise the extension options on three theatres in southern California: Mission Valley 20 in Orange County, the Promenade 16 in Woodland Hills, and the Ontario Mills 30 in Ontario. The Company has entered into a letter of intent with another operator for the renovation and re-lease of the Grand 24 in Dallas, Texas, which AMC elected not to renew.

Finally, the Company announced that it has entered into a contract to sell the former Havens Winery property in Napa, California for approximately $6.5 million. All material conditions to closing have been satisfied or waived, and the transaction is expected to close before the end of the second quarter of 2010.

David Brain, Chief Executive Officer of Entertainment Properties Trust, commented, aWe are excited about expanding our existing relationship with Cinemark, and we look forward to growing the relationship in the future. At the same time, we are pleased to receive the expected extensions on three of the four maturing AMC leases, and we are looking forward to rejuvenating the historic Grand 24 property with a new tenant. Both the three renewals and the strong interest in the Grand 24 from other operators demonstrate the underlying value of EPRa™s real estate portfolio.a

About Entertainment Properties Trust

Entertainment Properties Trust (NYSE: EPR) is a real estate investment trust (REIT) that develops, owns, leases, and finances properties for consumer-preferred, high-quality businesses. EPRa™s investments are guided by a focus on inflection opportunities that are associated with or support enduring uses, excellent executions, attractive economics, and an advantageous market position. The Companya™s total assets exceed $2.8 billion and include megaplex movie theatres and entertainment retail centers, as well as other destination recreational and specialty investments.

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