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Tribune
to Acquire Real Estate from TMCT Partnership
Also
announces sale of Hollywood studios and real estate for
$125 million
CHICAGO Jan.
31, 2008 -- Tribune Company
today announced it will purchase real estate currently leased
from TMCT, LLC, which includes properties used by the Los
Angeles Times, Newsday, Baltimore Sun and Hartford Courant.
The company received an option to purchase the real estate
for $175 million through the 2006 restructuring of TMCT,
LLC.
In addition, Tribune announced the sale of Tribune Studios
and related real estate in Los Angeles to Hudson Capital,
LLC, for $125 million. The parties also agreed to a five-year
lease allowing KTLA-TV to continue operating at the location
through 2012.
Tribune plans to use the sale proceeds as part of a like-kind
exchange when it closes on its acquisition of the TMCT properties,
which is expected in April.
"The sale of the studios and other assets
enables us to execute a tax-efficient, like-kind exchange
to acquire a very strategic, long-term real estate position
in downtown LA at an attractive price," said Sam Zell,
Tribune chairman and CEO. "Further, the TMCT option
will help us eliminate rent payments in several key markets."
Tribune acquired the Hollywood real estate in 1988. The
10.5-acre parcel includes studio, warehouse and related production
space, plus several surface parking lots. Tribune Studios,
a unit of Tribune Entertainment Company, opened on the site
in 2001.
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TRIBUNE is America’s largest employee-owned
media company, operating businesses in publishing, interactive
and broadcasting. In publishing, Tribune’s leading
daily newspapers include the Los Angeles Times, Chicago Tribune,
Newsday (Long Island, N.Y.), The Sun (Baltimore), South Florida
Sun-Sentinel, Orlando Sentinel and Hartford Courant. The
company’s broadcasting group operates 23 television
stations, Superstation WGN on national cable, Chicago’s
WGN-AM and the Chicago Cubs baseball team. Popular news and
information websites complement Tribune’s print and
broadcast properties and extend the company’s nationwide
audience. |
