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Four US amusement parks and three waterparks formerly operated by Six Flags Inc are to be sold to the company PARC Management LLC for US$312 million.
The parks in question are Darien Lake, Darien Center, New York; Elitch Gardens, Denver, Colorado; Frontier City and the White Water Bay waterpark in Oklahoma City; Splashtown, Houston, Texas; Waterworld, Concord, California; and Wild Waves & Enchanted Village, Seattle.
PARC management will sell the sites to CNL Income Properties, an Orlando-based real estate investment trust, and then lease them back through a 52-year tripe-net lease.
The seven parks had attendance of 3.6 million in 2006. Although originally offered for sale, Six Flags Magic Mountain and the adjacent Hurricane Harbor waterpark in Valencia, California, were not included.
PARC Management will seek to strengthen each of the parks’ appeal in the regional markets they serve, while ensuring each retains a distinct brand identity. The Six Flags brand will be phased out during the 2007 season.
PARC Management intends to retain all the present employees at each property. All season passes, group outings and group tickets purchased for the 2007 season will be honoured. Additionally, all 2007 season passes for Darien Lake and Elitch Gardens will continue to be honoured at all Six Flag’s branded parks.
“We are committed to providing the very best guest experience,” says Randal H Drew, PARC Management president and CEO, “and will be working with the park teams to enhance the guest experience through capital improvements and a renewed focus on wholesome family entertainment in a clean safe environment.”
“These are notable properties in excellent markets,” adds Michael A Jenkins, PARC chairman. “We believe our expertise in designing and operating parks will help make them even more attractive regional family entertainment destinations in the years to come.”
Upon completion of the acquisition, the parks will add to CNL Income Properties’ diverse and growing portfolio of lifestyle assets, which include waterparks, family entertainment centres and now theme parks, in addition to ski resorts and golf course properties throughout the United States and Canada.
In recent years, the company has acquired interests in approximately $1 billion of real estate in the lifestyle and recreation sector. In recent years, CNL has expanded into the attractions sector by acquiring interests in properties such as Great Wolf-branded indoor waterparks, Hawaiian Falls outdoor waterparks, the Gatlinburg Sky Lift and Zuma family entertainment centres