Facility at the Ricoh Arena in Coventry acquired for £650,000
Isle of Capri Casinos has sold a casino at
the Ricoh Arena in Coventry, UK, to The Rank Group for £650,000, or an approximate current U.S. value of
In conjunction with the transaction, the
Isle of Capri also executed a buy-out of the company's obligations under the
Coventry casino lease for £7.7 million (US$11.2 million),
and releases Isle from its parent guarantee under the lease.
Donn Mitchell, senior vice president of UK operations
for Isle of Capri, said, "We have taken a significant step forward in our
plans to focus on U.S. operations by arranging for a discounted buy-out of the
Coventry casino lease and sale of the Coventry casino operations to Rank. We
are very pleased with the outcome of this transaction as the deal enables us to
strategically exit the UK
on good terms from all ongoing financial obligations, including our lease with
the Ricoh arena. Additionally, the property will continue to operate under the
management of one of the top UK
gaming companies, so we do not expect the impact of a closure to be felt by employees
or patrons. We built a magnificent facility in Coventry
hoping to take advantage of changes in the UK gaming laws that did not occur,
and have executed this deal in order to substantially mitigate the negative
financial impact we expected to incur should we have continued to operate our
facility there moving forward."
Rank said in press statement
that the casino will be re-launched under Rank's G Casino brand after an
investment of £1 million to reconfigure the site. It will
become the Group's eighth G Casino within a portfolio of
33 UK clubs.
comes as Rank revealed a 3 percent rise in revenue at Grosvenor
Casinos for the first 16 weeks of the financial year.
Phil Urban, managing director of
Grosvenor Casinos said: "In recent years we have successfully
broadened the appeal of our business through the development of
the G Casino
brand, offering customers a grown-up leisure
experience based on entertainment, gaming, fun
and hospitality. I am excited at the prospect of bringing G
Casino to Coventry as part
of the superb Ricoh Arena."
Grosvenor Casinos will take over
management of the casino with immediate effect. The Isle of Capri casino was
opened in 2007 as part of the £113 million Ricoh Arena.
Isle of Capri sells UK casino to Rank Plc
April 23, 2009