Sale and leaseback, Ibrox, Murray Park, Albion

You’ll remember in October last year I told you I was in receipt of a Heads of Terms for the sale and leaseback of Ibrox, Murray Park and the Albion Car Park.  The internet has been full of chatter around this subject for the last week but I didn’t have an update on the subject until last night.

At the time I said the deal would not be signed until after the share issue, which took place in December. Charlie is back in town, and I hear the Sale and Leaseback-ball is in play.

According to the Heads’ the buyer will pay £7.285m for all three properties and, in addition, will provide a loan to the tenant of £6.9m at an interest rate of 15% p.a.

Rent will be reviewed every five years, on an upwards only basis, either at RPI or 2% p.a., whichever is greater.  RPI is currently 3.3%

Say Goodbye to Murray Park

The tenant “will take a lease for the stadium and the car park on a 20 year lease at an initial rent of £1.8, per annum”.  Murray Park is offski, gone, no longer available to Rangers International, or any of its successor clubs.

Interest on the loan works out at £985.5k per annum, so rent plus interest would be £2.835m p.a.

Top line figure for both sale and loan is £13.835m, however, the first three years rent (£5.4m) will be held back as no one is prepared to guarantee the rent, so actual cash into the business will be £8.435m.

Murray Park planning permission

If the new owner of the properties attains planning permission for residential properties at Murray Park within three years of the deal being signed, a provision releases the seller from having to repay the outstanding portion of the loan.  If planning permission is achieved after three years, no element of the loan is forgiven.

Potatoes

The buyer can do whatever they like with Murray Park.  Can you suggest a suitable use?  Perhaps they’ll plant potatoes.

Securitisation

“Rents will be guaranteed from ticket receipts and a first charge on the season tickets income will be granted.”

The tenant has the option to buy-back the stadium (only).  If the stadium is bought-back in year one the cost will be £10m.  Thereafter the purchase price will increase by 12% p.a. until year 10.  After year 10 the right to buy-back the stadium will be at “Market Value but no less than £20m”.

Should they buy-back the stadium, the lease will remain in place for Albion Car Park at a rate of £250k p.a. (subject to same rent review arrangements).

So what does this mean?  The cash will be welcome and will enable to club to survive until into next season.  If they spend the money on lottery tickets, there’s a chance they will get lucky and survive well into the season after next.

Suggestions that some people are preparing to squeeze the last penny out of a busted brand are contemptuous.

The next issue of CQN Magazine is being prepared. Let me know if you would like to advertise, or if you would like to submit an article, celticquicknews@gmail.com.




1203 thoughts on "Sale and leaseback, Ibrox, Murray Park, Albion"

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  • coatbridge paper bhoy

    Hello Bobby
    Gb

  • twists n turns

    Must be about that time?

  • coatbridge paper bhoy

    Nearly twists
    Gb

  • BIGbones8867

    HailHail

  • twists n turns

    Ha..cpb, just walked into office, refreshed and there it was….nearly a poachers tap in…almost stolen from the guy who did all the hard work!

  • coatbridge paper bhoy

    Aye Paul…. Potatoes , at least they’ll have something to lift at the end of the season ;) ,
    Gb

  • The Spirit of Arthur Lee

    Pearl’s a Singer

  • praecepta

    P67

    Good article – supports the hypothesis that a number of us were posting Oct/Nov 2011.

  • twists n turns

    Paul 67

    all becoming clearer. Short term cash injection, and the future will ….err…take care of itself?

  • derrydave

    Please let this be true !!!!! Does the ‘Green Team’ have the power at board level to push tis through ???????????????

  • Dexter

    Paul67- again, an interesting article- But, why the continuing focus on another club???

    CELTIC FC have an important league game followed by a potentially crucial CL qualifier in the next week.

    WE have sold some of our best players without replacing them with only days left to said CL qualifier.

    As CELTIC FC move from Finborgason to Doyle to Pukki, does this represent plan a, b, c???

    Where do WE end up? An SPL striker? A Cliftonville striker? A loan?

    This is a joke. Should’ve had at least a striker in long ago. Every day, CELTIC FC are losing preparation and training time for any new players and for the rest of the squad.

    If the fans’ dedication is not reciprocated by the board, CELTIC FC will have SPL attendances under 30k this season, in spite of official figures.

    Lets shine the light on CELTIC FC. Not on other clubs.

    HH to the GB

  • Tallybhoy

    Btw – I read the article first.

    Very carefully I might add.

    …and very enjoyable and informative it was too.

    CFC could buy Minty Park, and then bring in an exorcist to rid the place of unwanted entities.

    Lennoxtown can be a bit bleak in the winter months.

    HH!!

  • Gordon_J backing Neil Lennon

    Ah but who currently owns the properties? Is it a club? A company? An individual?

    And are there any outstanding charges against any of the properties?

  • Vmhan

    For sale, for sale!

    Orcdome for sale……. anybody?…….is anybody there?……for a pound then.

    Zombie “huv we naw been here before?”

    SlowcarcassstrippingCSC

  • 79caps

    With only a year left on his contract, Pukki would not be as expensive as the Icelander. They are about the same age. Pukki has not been able to establish himself in the Schalke team, but the Bundesliga is much stronger than the Dutch league.
    I saw him in that Europa League game when he scored twice for his Finnish team against Schalke. He looked really good then. I would be pleased if we signed him.

  • The Boy Jinky

    If I was dermot… i would buy murray park. … rename it the ” big jock knew how to win the big cup training centre” and use it for the yoofs

  • SydneyTim

    If a company buys a goal scorer can be be leased to Celtic on a goals per profit ratio?

    I see the old CQN software version 2.5 kicked in again, whereas more than 5 bloggers on the page talk about a goalscorer then a new article about the deid club pops up

  • Celtic_First

    Gordon_J

    Do you work for Waitrose?

  • BIGbones8867

    Dia Daoibh agus maidín maith daoibh uilig

    Need a bit of help,my f5 button is used for another function on this laptop,toshiba satellite.

    Can’t refresh the page,please help

    BB

  • greendreamz

    Great article…………

    Potatoes………. Dinosaurs……….Tar Pits……….Extinction

    Its a matter of when….not if.

  • Hoops_Neil_Lennon_diditagain

    May save them money as they wont be liable for maintaining the stadium?

  • Kilbowie Kelt

    Spot on, Gordon J.

    Bomber cut through all the nonsense.
    ‘ SHOW US THE DEEDS.’

  • cliftonville celt from belfast

    Oh my my my my my

    I wonder what part Craigy plays in all this ? Will he turn up with the deeds and a load of baliffs and turf Chaz and his mates out ?

    Wonder how much it would cost to rent Coventrys stadium ? I think they may require a new ‘home’ soon if Craigy isn’t getting paid.

    I love Craigy White he’s my favourite character in this whole soap opera

  • SydneyTim

    79 Pukki is not expensive as finbogason as unlike finbogason who scores goals, pukki doesn’t

  • 79caps

    The Big Rented House must stay open.

  • RobinBhoy

    Extinction looms, who’d have thunk it?

    Rumours, who believes them?

    Tomorrow’s chip wrappers if anybody is daft enough to buy the papers these days……

  • DontPatmadug

    Dexter
    12:37 on
    15 August, 201

    Interesting.

  • celt for life

    Has Chicco still not got round to renaming that Murray Park as yet???

  • cliftonville celt from belfast

    Pukki is that not a type of pie in England ?

  • cliftonville celt from belfast

    celt for life

    Yeah its now called ‘for sale’

  • Celtic_First

    celt for life
    12:50

    Aye, he decided to call it Waitrose Milngavie, which I think you’ll agree hits just the right note of Rangersness.

  • Malone Bhoy

    Am I getting this right:

    Basically they’re selling the stadium, car park and Murray park for £7.285m (the assets) and including a £6.9m (loan) of which they’re pretty much exchanging £5.4m for 3 years rent.

    So they’ll be up £8.785m but lose all their assets (although these should have been sold off after liquidation so that’s probably not too bad a deal).

    How long is the term of the loan? What happens if payments are defaulted as there is no security left? (Shares in club?)

    If Murray Park is made into flats within 3 years (probably a good chance of planning permission going ahead – can they just wait 3 years to apply?) does this mean the £6.9m loan is not repayable at all meaning the total is £14.185m for the assets?

  • Sheik Yerbouti

    WE NEED A NEW SPINE OF THE SQUAD

    WANYAMA REPLACEMENT

    HOOPER REPLACEMENT

    GOT A WILSON REPLACEMENT IN TWO NEW CBs

    FORSTER REPLACEMENT

    AS WE KNOW HE WILL BE SOLD

    MAYBE THE BOARD ARE RELYING ON OOR NEIL

    BEING THE NEW BOB PAISLEY

    LAST 16

    NOT THIS YEAR

  • Henriks Sombrero

    Paul – When do you expect this to happen ? Are we talking this next week or 6 months down the line ?

  • Parkheadcumsalford

    Paul67,

    Your use of the word “contemptuous”, is that Jabba-esque??

  • 79caps

    Sydney Tim

    I don’t think you can assume that Finbogasson is better than Pukki. The Dutch league is not known for its defending. Quite a few big scoring strikers have gone from the Dutch league to a bigger league and have failed. (Sami was an incredibly prolific scorer at Finbogasson’s club, not so now, though a very good player.)

    If you can find a video clip of the Schalke v. HJK Helsinki match, you’ll see how good Pukki can be.

  • greendreamz

    PUKKI http://www.youtube.com/watch?v=u9yWGbH3ttY&list=TL-X9FsGO2UPQ

    Boy knows where the goals are…against high quality opposition.

  • Gordon_J backing Neil Lennon

    Celtic_First,

    No … are they looking to expand? Presumably in East Dunbartonshire rather than around Ibrox I would assume …

  • !!Bada Bing!!

    Dexter-Bang on,fiddling while Rome burns.

  • deliasmith

    Paul:

    Very good piece indeed, and all the more impressive or being so precise.

    It’s the copy editor in me, but:

    According to the Heads’ the buyer will pay £7.285m for all three properties and, in addition, will provide a loan to the tenant of £6.9m at an interest rate of 15% p.a.

    Top line figure for both sale and loan is £13.835m, however, the first three years rent (£5.4m) will be held back as no one is prepared to guarantee the rent, so actual cash into the business will be £8.435m.

    £7.285m + £6.9m = £14.185m

    So actual cash into the business will be £8.785m – yes?

    Or am I missing something that adds up to £350,000?

    And … Contemptuous is what we feel about this gang of pirates, contemptible is what their antics look like to any objective viewer.

  • twists n turns

    So der hun will be going from Lodgers to Ludgers?

  • johann murdoch

    Have we sold the goalie yet?……

  • Paul67

    coatbridge paper bhoy, ha! Like it.

    praecepta, indeed.

    twists n turns, exactly.

    Dexter, because I have news. This has become a live issue (again) recently, for months beforehand focus was very much on Celtic, and will return to Celtic soon……..

    Chill, you’ll enjoy your August.

    Parkheadcumsalford, hmmmm.

    deliasmith, I’ll check…….

  • SydneyTim

    79 30 goals in 6 years shows what sort if striker pukki is. Ie a non goal scoring forward
    Have we not had a belly full of them :(

  • DontPatmadug

    Henke ‏@GlasgowsGreen 4h
    Aberdeen expecting Pittodrie to be sold out for the first time in 6 years on Saturday.

    Armageddon !!

  • jquinn67

    Do we know if Imran is entitled to his 5% of this deal? ;-)

    Let’s just hope this goes through!

  • The Spirit of Arthur Lee

    An invisible man married an invisible woman. The kids were nothing to look at either.

  • jc2

    Paul67

    Hopefully Ahmed gets his 5% on this deal

    wah wah wah : > )

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