Macquarie Leisure Trust to break from parent

Macquarie Leisure Trust Group, the owner of Dreamworld theme park and WhiteWater World, Goodlife Health Clubs and AMF Bowling Centre, has unveiled plans to part from parent company Macquarie Group.

The trust will pay $17 million to acquire shares and management rights, which means it would no longer have to pay an annual fee of $3 million, plus performance fees, to Macquarie group.

The leisure group will then seek to raise $41.7 million through an underwritten placement to institutional investors to reduce debt and pursue its growth strategies as a standalone entity.

The company has also recently raised $30 million through a sale and leaseback deal on its AMF Bowling sites which will be used to reduce gearing.

Macquarie Leisure Trust's Chief Executive Greg Shaw, explains that "since its inception as a property trust with essentially passive investments in leisure assets, Macquarie Leisure Trust has evolved into a portfolio of operating businesses with acquisitions such as AMF Bowling Centres and Goodlife Health Clubs.

"The next phase will see management continue to focus on operational performance, while looking to take advantage of an industry which is experiencing some fragmentation as a result of the current economic environment and debt markets."

Image: AMF Bowling.