Propco, Gala Coral’s property subsidy, has completed the sale of 47 Gala Bingo properties to M&G Investments, with a further five properties due to complete shortly. These disposals will be worth £173.4m in total.
As part of this transaction, Gala Retail has entered into new 25-year leases with M&G and has also made a payment of around £34m to reduce the rent on its bingo properties by about £9m to £15.5m pa.
This transaction follows the previous sale of two other freehold bingo properties and the sale of the eight freehold casino properties for a total consideration of £58m.
Paul Bowtell, CFO of Gala Coral Group said: “Today’s announcement is good news for the Gala Coral Group as it further streamlines our financial structure. In addition, the move to current market rents on these clubs for Gala Bingo will enhance the profitability of the business”.
CBRE advised Propco on the sale and Savills acted on behalf of M&G.
