Venu Holding Corp Sells Colorado Land for $49.7M; Leases Back Property
Venu Holding Corp announced the sale of approximately 9.5 acres of land in Colorado Springs, Colorado, which underlies its Ford Amphitheater, for a purchase price of $49.7 million. The sale, conducted through a subsidiary, also included an adjacent 1.1-acre undeveloped parcel for $10.00. The transaction was structured with a cash payment and a promissory note, and Venu Holding Corp will issue 5 million warrants to the buyer. The company intends to use the proceeds to fund redemptions of subsidiary beneficial interests and support ongoing development activities. Concurrently, a 25-year ground lease agreement was established for the property, with annual base rent starting at $4.22 million and escalating every five years.
Key Highlights
- Venu Holding Corp subsidiary sold approximately 9.5 acres of land in Colorado Springs for $49.7M.
- The sale includes the ground underlying the Ford Amphitheater, not the amphitheater itself.
- An adjacent 1.1-acre undeveloped parcel was also sold for $10.00.
- The purchase price was funded by a $29.82M cash payment and a $19.88M promissory note.
- Venu Holding Corp will issue 5M warrants to the buyer, exercisable at $3.79 per share.
- The company plans to use proceeds to fund redemptions of subsidiary beneficial interests.
- A 25-year ground lease agreement was entered into for the property, with renewal options.
- The ground lease includes an annual base rent of $4.22M, with 10% escalations every five years.
Price Impact
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