Sale and leaseback, Ibrox, Murray Park, Albion

1203

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.
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  1. BT,

     

    Baseball bat, mammy and daddy used to sing lullabys when they used the sleepy time baseball bat

  2. canamalar1

     

     

    Aye that’s true but you probably get to more games than me, when I’m home it’s just a big treat for me to get to Paradise all else fades away…

  3. BT,

     

     

    Have you been out on the ran-dan again?!

     

     

    It’s about time you went for a good long walk and visited DFD!!

  4. Wee oscars cancer has returned.

     

    The wee man is in a bad way.. Puts the football into perspective..

  5. Starry…,

     

    I’m talking about the Qatari authorities, I need permission to leave the country, no kidding.

  6. Glen Daly

     

    I was crying like a baby at mass today..

     

     

    U know why..

     

    BTW still have crutches so no walking for me

  7. Horrible news on twitter.

     

     

    The wee mhans cancer has returned. Wtf has that wee mhan have to go through??? So sad.

     

     

    Weefra HH

  8. jude2005 is Neil Lennon \o/ on

    b t

     

     

     

    Calm down. When did i have a prob with ur posts?? Its all banter btw.

  9. Mcdowellcelt,

     

    Life is shit, poor wee mhan, hopefully he’s ready for the next round, the BHOYS a fighter and braver than most, he won’t take this lying down.

     

    Get in there wee mhan you’ve gubbed it before, you can do it again.

     

    God bless Oscar

  10. @ Doc.

     

    No it’s fact.. Devastating news.. His mum has wrote the news on his blog a short time ago.

  11. doc

     

     

    This is from #fearlessoscarknox. The wee mhan deserves better than this. Let’s get this sorted. I really am devastated.

     

     

    Weefra HH

  12. Steinreignedsupreme on

    canamalar1 23:22 on15 August, 2013

     

     

    It’s no done till I’ve stamped on their grave, howmany times have we said its done ?

     

    Only for another turn to surface and then the panic sets in again, the fat lady is still to get on stage, so stop celebrating too early, it’s becoming a feature.

     

    Aye again it looks promising but it’s still no done there’s a mob still playing out of the badgers den claiming to be the Hun and as long as that happens the SFA will protect them, unless we remove the facilitators then nothing has changed.

     

     

    ———-

     

     

    What you have to accept is that no matter what happens to the Huns/Zombies – they could change the name of the club, move to another ground, change the kit and the badge – they will never accept the truth.

     

     

    Defiance is all they have. And defiance is nothing in the face of facts.

     

     

    There appears to be a school of thought on here that ‘the Huns got away with it’. They didn’t.

     

     

    The club was liquidated. This is not a matter of opinion – it is a matter of public record. No amount of pretence by the SFA, the media or the Zombies will ever change that.

     

     

    They have no way of avoiding what is about to hit Sevco. Expect their reaction to be the same. The Zombies have already provided endless proof that they are incapable of learning lessons.

     

     

    Allowing their stance to annoy you means you are providing stupid people with a victory similar to Scotland’s 3-2 defeat at Wembley.

  13. BT

     

     

    Agreed. Surely we can get together and sort this out once and for all. Long shot, maybe, but let’s go for it. I’m in if all others agree.

     

     

    Weefra HH

  14. Just saw the weeoscar news…absolutley gutted …. thoughts and prayers with the family and friends. …

  15. A Ceiler Gonof Rust on

    I’m watching the opening ceremony for the Solhiem Cup and I really fancy the Americans……………………………………and I don’t mean to win it.

     

     

    Finnar finnar.

  16. jude2005 is Neil Lennon \o/ on

    bt

     

     

    All this sad news about wee Oscar and you post that?? Shame on you!!!

  17. A Ceiler Gonof Rust on

    Apologies guys’ I posted flippantly before reading back and learning that wee Oscar has another battle on his hands.

     

     

    Like before, the Celtic family is behind you in your fight against this bastard disease.

     

     

     

    Hail Hail Oscar Knox and our Celtic Family.

  18. celticrollercoaster on

    Early morning fholks

     

     

    The CQN predictor starts later tonight with the Jags game!

     

     

    We have 49 predictors so far on board so far with their predictions. Could we get up to the magic 67?

     

     

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    HH

     

     

    CRC

     

     

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