Cedar Fair sells its land at California’s Great America
Cedar Fair has sold the land at California’s Great America in Santa Clara, Calif., and plans to close the amusement park once the lease agreement with the new owners expires.
Cedar Fair – one of the largest regional amusement-resort operators in the world – purchased the land in 2019 from the city of Santa Clara after California dissolved redevelopment agencies, requiring the city to sell the property to pay off existing debt. Before 2019, the company leased the land from the city for more than 40 years.
The land’s new owner, Bay Area-based logistics real estate company Prologis, Inc., paid approximately $310 million for the property with a long-term lease agreement under which Cedar Fair will continue to operate California’s Great America for “up to 11 years,” at which point, existing park operations will close.
“We chose Prologis as our partner because of their deep ties in the Bay Area and their reputation for working closely with local communities on large developments,” said Cedar Fair President and CEO Richard A. Zimmerman. “For our investors, the sale and lease agreements allow us to monetize a high-value asset in the heart of Silicon Valley at a very attractive multiple. The transaction also provides us with a substantial sum of incremental capital which we intend to use to further advance our strategic priorities and generate enhanced returns for our unitholders.”
Click here for more information about California’s Great America.