Miami Herald Sells HQ in Downtown to a Hotels and Cruise Line Group
Minggu, 29 Mei 2011 by Android Blackberry
The publishing provider of the Miami Herald, McClatchy Co. (MNI) sold a 14-acre parcel of Miami prime land for 236 million US dollars to Genting Malaysia, a sale begun six years ago by then- independent Knight Ridder Inc.
The Malaysian group owns 50% of Norwegian Cruise Lines which operate from the port of Miami and plans to create a tourism hub within the 14 acres.
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| The Malaysian group owns 50% of Norwegian Cruise Lines |
The sale includes the Miami Herald Media Co.’s headquarters and a parking lot, the corporation announced. Under the agreement, the Miami Herald and El Nuevo Herald can operate out of the creating for up to two years rent free of charge while seeking a brand new home.
The deal may perhaps give McClatchy having a money boost surpassing its market value. Revenue at the Sacramento, California-based organization has dropped for three years as circulation and ad sales had been hurt by competition from Internet publications. Its shares have lost 94% in the past five years, leaving the business with a market value of 234.7 million US dollars, as of last week’s close.
The organization inherited the sale of about 10 acres in Miami when it acquired Knight Ridder for 4.1 billion USD in 2006. It extended the closing deadline for yet another buyer 3 times and collected a minimum of 16 million USD in the course of the negotiations.
The publisher said it'll contribute 163 million USD of the sale price toward its pension program, 65 million are going to be offered to specific debt holders, 6 million will likely be held in escrow and two million will be used to pay taxes.
McClatchy’s paid circulation for newspapers which includes the Kansas City Star and Fort Worth Star-Telegraph fell three.7% within the first quarter and its advertising sales, which account for practically three-quarters of revenue, dropped 11%.
At the web page the Malaysian group plans to build a tourism complicated with hotel, residences and entertainment areas virtually in downtown Miami and on the water front. Genting Malaysia owns hotels and casinos world wide and 50% of Norwegian Cruise Lines which operates from the port of Miami.
