Jana Partners pushes Six Flags to explore sale, replace board chair, letter says

[warfelg]

Question is if you build it would it make the landowner any money or just further in debt subsidized by those leasing the buildings?

It depends. I think if you go with the mindset of they will build it, taking on that risk, with leasing out the spaces there could be long term benefits for them by controlling what happens with the spaces over selling it to do the same.

 

[Jonesta6]

It depends. I think if you go with the mindset of they will build it, taking on that risk, with leasing out the spaces there could be long term benefits for them by controlling what happens with the spaces over selling it to do the same.

I'm guessing that was part of the decision making process for selling the land - short term gain won. However, I'm curious what the analysis must have shown for ROI given where the land is located and what facilities would be needed to support such a development.

 

[rswashdc]

Selling out land and renting it back is usually because the company is desperate for cash. The headlines for this are in PE, but generally the company is already struggling a lot to go down this path.