www.parkworld-online.com
ParkWord March 2011
Can you be a park owner without operating any parks, and can you be an operator without actually owning any parks? The answer to both questions is yes.
Over the past few years, the real estate investment trust CNL Lifestyle
Properties has steadily built up a portfolio of 24 amusement parks, waterparks and family entertainment centres across the USA and Canada. Based on the number of properties, this makes it North America's third largest owner of gated attractions. However, CNL does not actually operate any of the parks it owns. Instead it leases them out to experienced attractions operators, who in turn generate a return for its investors. Recently CNL appointed a number of new operators, including established players such as Palace Entertainment and Herschend Famly Entertainment, alongside new entities including Amusement Management Partners and Premier Attractions Management. The latter two companies, incidentally, mark the return of industry heavyweights Bob Masterson and Gary Story. Back in 2007, one of the first things Merlin Entertainments did after acquiring the Tussauds Group in the UK was sell the attractions Alton Towers, Warwick Castle, Thorpe Park and Madame Tussauds in London and lease them back on a 35-year deal with the property investment group Prestbury. Merlin still owns the freeholds to many of its other attractions, but this was a smart move from a canny operator that helped it recoup more than half the money it paid for Tussauds. For other, smaller operators with less access to large amounts of cash, the temptation to sell the land on which they do business and lease it back may be a tempting prospect, particularly in the current climate. That way they can sell the family jewels, yet stay in the industry they – and all of us – love. In our interview with CNL's Curt Caffey on page 26, he reveals that more US park acquisitions are likely, yet as the company's abrupt termination of a contract with PARC Management this winter proved, not all operators are able to negotiate such lengthy leases as Merlin. No matter how good your operations expertise, land values will always be worth more than the rides and attractions that stand on them. So what do you really want to be – a park operator or a park owner?
Owen Ralph - Editor
Editor Owen Ralph (+44 161 438 2934)
parkworld@btopenworld.com
North American Editor Paul Ruben (+1 585 381 1012)
parkw@rochester.rr.com
Contributors this issue Jack Samuels, Liam Daniels
Sales Manager Mark Burgess (+44 1622 699124)
parkworld@datateam.co.uk
Publisher Paul Ryder
pryder@datateam.co.uk Managing Director Parvez Kayani
p.kayani@datateam.co.uk
Subscriptions Karen Wright (+44 1622 699109)
parkworld@datateam.co.uk
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MARCH 2011
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