I understand how tough it is to remain solvent in differing business climates, but I’m slightly puzzled by this sale. Six Flags needs cash, and selling brings that quickly, but profitable ventures are hard to come by.
This is not the first property Six Flags has sold. Last year, they sold AstroWorld in Houston, which was completely demolished for development, no longer a theme park.
I am interested in the future of the parks under the new managers.
Six Flags Inc. has sold its Splashtown water park in Houston after finding a buyer to snap up seven theme parks in a deal valued at $312 million.
The buyer is PARC 7F-Operations Corp. of Jacksonville, Fla. PARC will simultaneously sell the parks to CNL Income Properties Inc., a Florida-based real estate investment trust. PARC 7F will then lease back the parks from CNL.
Terms of the sale call for New York-based Six Flags (NYSE: SIX) to receive $275 million in cash and a note receivable for $37 million.
In addition to Splashtown, the other sold properties are Darien Lake near Buffalo, N.Y.; Elitch Gardens in Denver; Frontier City and the White Water Bay water park in Oklahoma City; Waterworld USA in Concord, Calif.; and Wild Waves and Enchanted Village in Seattle.