Magna Entertainment announced Thursday that it has entered into an agreement to sell approximately 157 acres of its excess real estate located in Palm Beach County, Florida to Toll Bros, Inc., a Pennsylvania real estate development company, for $51 million.
According to the announcement, the sale is subject to the completion of due diligence by Feb. 28, 2006 and a closing by March 30, 2006.
"This transaction is the next step in our recapitalization plan to sell certain non-core assets, reduce debt and strengthen our balance sheet," said W. Thomas Hodgson, president and CEO of Magna. "We will continue to work towards our goal of selling further non-strategic real estate and other assets, to maximize realizable value, and to position MEC to attain sustainable operating profits and exploit future strategic growth opportunities. Toll Bros. is a premier builder of luxury homes and their high standards and development capabilities will result in a first class
development on the land adjacent to our Palm Meadows Training Center."