(Crystal Proenza is associate editor of Real Estate Florida.)
FORT LAUDERDALE, FL-Locally based Muvico Theaters has sold three of its South Florida locations as part of the company's financial restructuring. The theaters, which total 296,000 square feet, include the Muvico Palace 20 in Boca Raton, Muvico Boynton 14 in Boynton Beach and Muvico Paradise 24 in Davie. The theaters, along with one location in Hannover, MD, have been sold to Plano, TX_based Cinemark USA Inc., which will rebrand them over the next few months. The value of the transaction was not disclosed.
Funds from the deal are to be used to retire $55 million in debt owed to iStar Financial, for which Muvico had not made payments since October 2008, according to the Miami Herald. A release by Muvico stated that the company has now "retired all of its senior debt obligations." A spokesperson tells GlobeSt.com that Muvico does not plan to sell any other locations in the region.
The funds will also be used to upgrade the company's remaining facilities and "is evaluating the addition of new entertainment amenities to compliment and enhance the movie going experience. These new amenities include the addition of interactive gaming, bar and dining facilities and reserved seating," according to the release.
Muvico currently operates 169 screens in 10 theaters, seven of which are in Florida. Another 50,000-square-foot location is planned at CocoWalk in Coconut Grove to feature a dining concept and a possible bowling alley. New facilities are also under way in Malvern, PA and Fredericksburg, VA.
"These projects truly represent our vision going forward and we are very fortunate in this economic environment to have accomplished our financial restructuring, retiring all of our outstanding senior debt, as well as securing additional capital which will allow us to complete these exciting projects," said Michael F. Whalen Jr., Muvico president and CEO, in a statement.
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