Anschutz Sells Manchester Arena
In the week Pollstar published that
โItโs business as usual, except that we pay the rent to someone else,โ GM John Knight told Pollstar, emphasizing that a change of ownership doesnโt affect the day-to-day running and booking of the venue because
Whatโs less certain, despite the ยฃ10 million or so profit
Buying property and keeping it for a couple of years in order to make money on the real estate is not common practice for AEG, which tends to build or develop properties โ the Berlin and London O2 Domes being examples โ in order to grow its ownership and management portfolios.
At press time it wasnโt possible to get comment from AEG President Tim Leiweke, but comments made at the time of purchase โ mid-March 2004 โ suggest the company had some plan in mind.
AEG Europe managing director Detlef Kornett said the company might want to turn the 20,000-capacity venue and surrounding area into a โworld-class development,โ according to the U.K.โs Financial Times.
Former Warwick Balfour director Jayne McGivern, who recently switched to AEG to head up its U.K. property expansion, said it was looking to grow its interests around the Manchester site as well as the Thames Gateway site near the London Dome.
However, since paying Vector Investments about ยฃ50 million (then US$91.7 million) for the arena complex and neighboring property including two office blocks, a multi-story car park and land that has planning position for another high tower, AEG seems to have just sat on it for a couple of years and has now shifted it to a joint-venture between GE Real Estate U.K. and Capital & Regional for ยฃ61.75 million (US$114 million).
โThe continued success of the arena under SMGโs management obviously makes the building an attractive proposition for purchasers,โ Knight explained, but wouldnโt comment on whether he thought AEG had considered the Manchester city center site for one of the new super casinos proposed by last yearโs Gambling Act.
Anschutz is known to be trying to put one on the Millennium Dome site, which has caused much furor in the U.K. press as deputy leader John Prescott has come under fire for not declaring his free stays at the Denver billionaireโs vast Colorado ranch.
โ John Gammon
