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How real estate will be handled in the Tribune Company spinoff of its newspaper properties, according to its SEC Form 10. http://www.sec.gov/Archives/edgar/data/1593195/000119312513466790/d635774dex991.htm
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Real Estate Matters | |
Tribune Real Estate Holdings, LLC (“Tribune Real Estate Holdings”), through its subsidiaries, | |
holds title to all of the owned real property that is used in the operation of Tribune’s | |
business, including the publishing business. Tribune Real Estate Holdings is a wholly-owned | |
subsidiary of Tribune, and following the distribution, Tribune Real Estate Holdings will | |
continue to be a wholly-owned subsidiary of Tribune. | |
Each subsidiary of Tribune Real Estate Holdings which owns a property that is used by | |
Tribune Publishing is party to a lease agreement with the relevant Tribune Publishing | |
entity with respect to such property. Each lease contains arm’s-length terms, which | |
were determined based on the recommendations of an independent licensed real estate | |
appraiser. These lease arrangements will continue, according to their respective | |
terms, following the distribution. | |
There are 15 net leases for Tribune Publishing’s industrial facilities which include | |
printing plants, distribution facilities and related office space. For printing | |
plants the initial lease term is 10 years with two options to renew for additional | |
10 year terms. For distribution facilities, the initial lease term is 5 years with | |
two options to renew for additional 10 year terms. Under the net leases, the rent | |
is net of taxes, insurance and operating expenses, and the tenant is responsible | |
for repairs and maintenance. | |
The leases for Tribune Tower in Chicago and Los Angeles Times Square, both of | |
which are large multi-tenant buildings, are gross leases which provide for | |
professional management of the building. At Tribune Tower, Tribune Publishing | |
leases approximately 306,000 square feet, while at Los Angeles Times Square, | |
ribune Publishing leases approximately 242,000 square feet. The gross leases | |
provide for an initial term of 5 years with renewal options for up to two | |
additional 5 year terms. Under the terms of the gross leases, the tenant pays | |
its pro-rata share of common area expenses, taxes and insurance and certain other expenses. |
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