NEW YORK, May 21, 2019 /PRNewswire/ -- iStar Inc. (NYSE: STAR) announced a $112 million transaction with Bowlero, the largest operator of bowling entertainment venues in the world, consisting of the purchase of nine bowling centers for $57 million and a commitment to purchase up to $55 million of additional bowling centers over the next several years. The new centers will be added to two of iStar's existing master net leases with Bowlero ("Lease I" and "Lease II"). In connection with this transaction, the maturities of Lease I and Lease II were extended by 15 years to 2047.
Lease I and Lease II were originally entered into in 2004 and comprise a total of 157 bowling and entertainment centers, including the centers to be acquired as part of this transaction.
As a result of this transaction, the Company will revalue the properties originally subject to the leases at fair market value for financial reporting purposes, resulting in an expected gain in the second quarter in the range of $145 million to $165 million, subject to final valuations.
"Our long-term relationship with Bowlero continues to be a productive one and this recent transaction helps to highlight the underlying value that has been created in our portfolio over the last 15 years," said Jay Sugarman, Chairman and Chief Executive Officer. "We believe highlighting these types of imbedded values in our portfolio will help drive shareholder value in 2019."
* * *
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to the amount of the gain the company currently expects to report in its financial statements as a result of the transactions described herein. These forward-looking statements are not historical facts and are based on management's current estimates of the fair value of the assets that are the subject of the transaction described in this release. For financial reporting purposes, the fair value will be determined in part based upon third party valuations that have not yet been performed. We do not guarantee that the actual gain to be reported in the Company's financial statements will be within the range contemplated in the forward-looking statements.
iStar (NYSE: STAR) is currently focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on all types of properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the first publicly traded company to focus on modern ground leases, iStar is helping create a logical new approach to the way real estate is owned, and continues to use its historic strengths in finance and net lease to expand this unique platform. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades. Additional information on iStar is available on its website at www.istar.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/istar-announces-new-investment-and-expanded-relationship-with-bowlero-300853990.html
SOURCE iStar Inc.
Client Contact: Barclay G. Jones III, Executive Vice President, Head of Net Lease Investments, T: 212.930.9433, E: email@example.com; Investor Relations Contact: Jason Fooks, Senior Vice President, Investor Relations & Marketing, T: 212.930.9400, E: firstname.lastname@example.org