Tribune Company today announced it
will purchase real estate currently leased from TMCT, LLC, which includes
properties used by the Los Angeles Times, Newsday, Baltimore Sun and
Hartford Courant. The company received an option to purchase the real
estate for $175 million through the 2006 restructuring of TMCT, LLC.
In addition, Tribune announced the sale of Tribune Studios and related
real estate in Los Angeles to Hudson Capital, LLC, for $125 million. The
parties also agreed to a five-year lease allowing KTLA-TV to continue
operating at the location through 2012.
Tribune plans to use the sale proceeds as part of a like-kind exchange
when it closes on its acquisition of the TMCT properties, which is expected
in April.
"The sale of the studios and other assets enables us to execute a
tax-efficient, like-kind exchange to acquire a very strategic, long-term
real estate position in downtown LA at an attractive price," said Sam Zell,
Tribune chairman and CEO. "Further, the TMCT option will help us eliminate
rent payments in several key markets."
Tribune acquired the Hollywood real estate in 1988. The 10.5-acre
parcel includes studio, warehouse and related production space, plus
several surface parking lots. Tribune Studios, a unit of Tribune
Entertainment Company, opened on the site in 2001.
TRIBUNE is America's largest employee-owned media company, operating
businesses in publishing, interactive and broadcasting. In publishing,
Tribune's leading daily newspapers include the Los Angeles Times, Chicago
Tribune, Newsday (Long Island, N.Y.), The Sun (Baltimore), South Florida
Sun- Sentinel, Orlando Sentinel and Hartford Courant. The company's
broadcasting group operates 23 television stations, Superstation WGN on
national cable, Chicago's WGN-AM and the Chicago Cubs baseball team.
Popular news and information websites complement Tribune's print and
broadcast properties and extend the company's nationwide audience.
SOURCE Tribune Company
Digg
Reddit
Slashdot