Gala Coral disposes 68 retail properties

Gala Coral’s retail strategy and possible sale of its retail business is moving forward with the disposal of 60 Bingo properties and 8 Casino properties facilitated by its property subsidiary 2005 Propco Three Limited (Propco).

Propco has sold 47 Bingo properties to M&G Investments, with another 5 expected to be sold shortly for a total consideration of GBP 173.4 Million, the company said in a statement.

Gala Retail will rent the properties from M&G Investments having signed new 25-year leases as part of the deal.

“Today’s announcement is good news for the Gala Coral Group as it further streamlines our financial structure,” commented Paul Bowtell, chief financial officer for the Gala Coral Group. “In addition, the move to current market rents on these clubs for Gala Bingo will enhance the profitability of the business”.

Gala Coral said it will continue to market the remaining 6 properties and expects these to be sold within the first quarter 2015.