NEW YORK, May 21, 2019 /PRNewswire/ -- iStar Inc.
(NYSE: STAR) announced a $112 million
transaction with Bowlero, the largest operator of bowling
entertainment venues in the world, consisting of the purchase of
nine bowling centers for $57 million
and a commitment to purchase up to $55
million of additional bowling centers over the next several
years. The new centers will be added to two of iStar's existing
master net leases with Bowlero ("Lease I" and "Lease II"). In
connection with this transaction, the maturities of Lease I and
Lease II were extended by 15 years to 2047.
Lease I and Lease II were originally entered into in 2004 and
comprise a total of 157 bowling and entertainment centers,
including the centers to be acquired as part of this
transaction.
As a result of this transaction, the Company will revalue the
properties originally subject to the leases at fair market value
for financial reporting purposes, resulting in an expected gain in
the second quarter in the range of $145
million to $165 million,
subject to final valuations.
"Our long-term relationship with Bowlero continues to be a
productive one and this recent transaction helps to highlight the
underlying value that has been created in our portfolio over the
last 15 years," said Jay Sugarman, Chairman and Chief Executive
Officer. "We believe highlighting these types of imbedded values in
our portfolio will help drive shareholder value in 2019."
* * *
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, or the
Securities Act, and Section 21E of the Securities Exchange Act of
1934, as amended, or the Exchange Act, with respect to the amount
of the gain the company currently expects to report in its
financial statements as a result of the transactions described
herein. These forward-looking statements are not historical facts
and are based on management's current estimates of the fair value
of the assets that are the subject of the transaction described in
this release. For financial reporting purposes, the fair value will
be determined in part based upon third party valuations that have
not yet been performed. We do not guarantee that the actual gain to
be reported in the Company's financial statements will be within
the range contemplated in the forward-looking statements.
About iStar
iStar (NYSE: STAR) is currently focused on reinventing the ground
lease sector, unlocking value for real estate owners throughout the
country by providing modern, more efficient ground leases on all
types of properties. As the founder, investment manager and largest
shareholder of Safehold Inc. (NYSE: SAFE), the first publicly
traded company to focus on modern ground leases, iStar is helping
create a logical new approach to the way real estate is owned, and
continues to use its historic strengths in finance and net lease to
expand this unique platform. Recognized as a consistent innovator
in the real estate markets, iStar specializes in identifying and
scaling newly discovered opportunities and has completed more than
$40 billion of transactions over the
past two decades. Additional information on iStar is available on
its website at www.istar.com.
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SOURCE iStar Inc.