Tuesday, Magna Entertainment Corp. (MECAD, MECA.A.TO) said that it entered into an agreement to sell approximately 489 acres of excess real estate located in Ocala, Florida to Lincoln Property Company and Orion Investment Properties, Inc. for a purchase price of $16.5 million cash, subject to a 90-day due diligence period in favor of the purchasers.
The company noted that if the purchasers determine that their due diligence review is satisfactory, then the transaction would close 60 days thereafter, subject to the satisfaction of customary closing conditions.
The excess property forms part of the security for the company's bridge loan with a subsidiary of MI Developments Inc., the Company's controlling shareholder. Under the terms of the bridge loan, any net proceeds received from the sale of the property must be used to make repayments under the bridge loan.
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