Cineworld to sell, leaseback some U.S. cinemas – Nasdaq

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May 15 (Reuters) – British cinema operator Cineworld Group Plc said on Wednesday it signed a deal to sell and lease back U.S.-based multi-screen cinemas to units of Realty Income Corp .

Cineworld will sell 17 cinemas for a cash consideration of $286.3 million and lease them back under 15-year leases.

The company, which had bought U.S. cinema chain Regal Entertainment for $3.6 billion, said it was also in talks with a separate party for a sale and leaseback deal involving 18 multi-screen cinemas based in the United States.

Cineworld’s board will consider returning future proceeds in the form of a special dividend, once the deal is completed.

The company said its plans to integrate Regal were on track.

Separately, the cinema operator said its total revenue fell 9.4 percent on a pro-forma basis for the period between Jan. 1, 2019 and May 12, 2019.


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