Magna Entertainment Corp (MECA) announced that the company has entered into an agreement to sell 225 acres of excess real estate located in Ebreichsdorf, Austria. This property is to be sold to a subsidiary of Magna International, utilized solely for their automotive business venture.
The closing of the transaction is expected to occur during the first quarter of 2008, pending satisfaction of customary closing conditions. Such conditions include obtaining all necessary regulatory approvals and licensing arraignments. The net proceeds received on closing will be used entirely to repay debt.
Blake Tohana, Executive Vice-President and Chief Financial Officer of MEC, commented “This transaction is the first significant contracted asset sale as contemplated by our previously announced debt elimination plan. We are continuing to pursue other asset sale transactions and remain committed to our debt elimination plan.”
Let us hear your thoughts below: