Saturday, February 28, 2015

Real Estate Sale

When you need to raise money, you liquidate stuff.

In a regulatory filing on Thursday, DreamWorks Animation disclosed that SunTrust Equity Funding had signed an agreement earlier this week to purchase the DreamWorks campus for $185 million.

The sale includes 10 buildings on about 15 acres of land, which was developed two decades ago and is dotted with olive trees, oaks and a koi pond. ...

I've walked around the campus numerous times. You feel like you're in the middle of an Italian Renaissance village, maybe a corner of Florence.

I think of the koi pond (which is large) as "Lake Katzenberg." Snowy egrets have been known to swoop in and feast on the fish swimming in its clear, placid waters.

Add On: Prez Emeritus Sito recalls:

Soon after the campus was completed, I was showing Frank & Ollie around when they came to visit. I remember Frank saying " This place is sure nice. And just think, if things don't work out, it would make a swell outdoor shopping mall..."

I don't think Frank's speculation will come to pass. Jeffrey is tenacious.


Steven Kaplan said...

I wish these stories focused on how this is a cash-flow positive thing for the studio. Sure, I'd concede that JK likely pull this kind of stunt if he wasn't in financial troubles. But this is still a good thing for Dreamworks for now .. and for better times.

"Studio executives told Wall Street analysts that the company signed a $185-million deal to sell the lot to an undisclosed buyer. DreamWorks will then lease back the 13-acre property dotted with oaks, olive trees and a koi-filled pond.

The decision is among a series of cost-cutting steps aimed at shoring up the studio's balance sheet. "Having a large unencumbered piece of real estate on the balance sheet just doesn't make sense," Chief Financial Officer Fazal Merchant said in a call with analysts."

LA Times Article the quote came from

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