REAL ESTATE NEWS

EPR Properties has acquired a portfolio of amusement parks from Six Flags Entertainment Corp. at a gross value of $342 million, with most of the assets concentrated in the U.S.

Under the deal, EPR said it provided roughly $315 million, with the REIT's operating tenants issuing the balance, which will cover costs for upgrades and working capital.

The portfolio spans more than 1,600 acres across seven parks and 418 attractions. Out of the parks, four are located in the Midwest:

Worlds of Fun – Amusement & Waterpark – Kansas City, Missouri; Valleyfair – Amusement & Waterpark – Minneapolis, Minnesota; Six Flags St. Louis – Amusement & Waterpark – St. Louis, Missouri; Michigan's Adventure – Amusement & Waterpark – Grand Rapids, Michigan.

The other U.S. parks are Schlitterbahn Waterpark Galveston – Waterpark – Galveston, Texas and Six Flags Great Escape – Amusement & Waterpark - Queensbury, New York. One park in the portfolio sits in Canada: Six Flags La Ronde – Amusement Park – Montreal, Quebec.

According to EPR, the portfolio comes with "strong master leases" and assets that are underwritten at 2.0x coverage.

Enchanted Parks will lease and operate the U.S. properties. EPR carries the rights for the Six Flags brand through 2026.

"This strategic acquisition represents a compelling opportunity to expand our attractions portfolio with high-quality experiential real estate assets in established regional markets," Gregory K. Silvers, chairman and CEO of EPR, said in a statement.

"These properties embody the essential characteristics we seek: delivering stable, long-term cash flows, strong drive-to accessibility, multi-generational appeal, and significant underlying land value. This transaction aligns with our disciplined investment criteria and accelerates our strategic expansion into experiential properties that create enduring value for our shareholders."

This marks EPR's largest acquisition it made since 2017, according to the company.

EPR's full real estate portfolio is focused on experiential and education. Its total operated locations come out to 333, with $7 billion of total investments, according to the Kansas City-based firm.

Source: GlobeSt/ALM