Magna Sells Off Land to Parent Company
Updated: Wednesday, February 7, 2007 12:39 PM
Posted: Wednesday, February 7, 2007 10:20 AM
Magna Entertainment has sold two properties for about $30 million combined to parent company MI Developments, the companies announced Feb. 7.
In the deal, MI Developments, which is a real estate operating company within the Magna International umbrella, acquired a 34-acre parcel of residential land located in Aurora, Ontario, as well as a 64-acre tract of what the companies term “excess land” at Laurel Park in Howard County, Maryland.
MEC also receives a one-time profit participation payment in respect of any sale or development of each property equal to 15% of the marginal net proceeds on such property after MID achieves a 15% internal rate of return.
MID said it plans to develop the properties, either by itself or in a joint venture arrangement, for residential and/or mixed-use purposes.
MEC plans to utilize the funds in a continuing effort to pay down debt the company has accrued. A press release says the company has sold off $400 million in “non-core” real estate in the last 16 months.
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