Hollywood Park Sale Completed for $257.5M

(from CDI press release)
Churchill Downs Incorporated and Bay Meadows Land Company announced completion of the sale of Hollywood Park racetrack and surrounding acreage at the Inglewood, Calif., site Sept. 23 for $257.5 million.

CDI said it would use proceeds from the sale to pay down debt.

The $260 million sale price announced on July 6 was reduced at closing by $2.5 million to cover the costs of addressing certain physical conditions at the property.

Over the next three years, CDI will continue to distribute the Hollywood Park simulcast signal through its Churchill Downs Simulcast Network, which will also distribute the simulcast signal for BMLC's racetrack in Northern California, Bay Meadows. CDI will have an option to reinvest in Hollywood Park should significant gaming activities become available at Hollywood.

CDI acquired Hollywood Park in September 1999 for $140 million from Hollywood Park Incorporated, which now does business as Pinnacle Entertainment Incorporated. Since that time, CDI has operated two race meets annually on the 238-acre site and leased space to Pinnacle Entertainment for the operation of a card club.

Hollywood Park Racing Association, which will conduct racing operations for the Hollywood Park Land Company, an affiliate of BMLC, has received racing dates from the California Horse Racing Board and will offer 97 days of live racing at Hollywood Park in 2006, subject to the completion of further licensing requirements.

HPRA has committed to continuing live racing at Hollywood Park for a minimum of three years while pursuing legislative changes to improve economic conditions for the horse racing industry in California. HPLC will also seek entitlements from the City of Inglewood to permit alternative uses for the current Hollywood Park racetrack site, in the event that efforts to seek authorization for expanded gaming activities at California racetracks are unsuccessful.

Hollywood Park is located 11 miles southwest of downtown Los Angeles and three miles from Los Angeles International Airport. The racetrack offers live racing during traditional spring/summer and autumn meets. Hollywood Park will conduct its 2005 Autumn Meet from Nov. 9 through Dec. 19. The racetrack also conducts simulcast wagering on site when it is not offering live racing.

Bay Meadows Land Company is the owner and operator of the Bay Meadows Racetrack in San Mateo, Calif., and developer of Park Place, a mixed-use development that was built on a 79-acre portion of the Bay Meadows site that previously encompassed a stable area and training track. Bay Meadows Land Company is owned by Stockbridge Real Estate Fund, a privately owned investment partnership.