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Village Roadshow Limited (VRL) is changing up its product portfolio, divesting from two of its United States Wet ‘n’ Wild Water Parks and exploring prospects in other markets.
In a statement issued by the company, it was claimed the focus would turn to countries “where the market is not yet mature, and higher returns are possible”.
Asia has been pinpointed as VRL’s next destination, where the company is currently developing a water park on Hainan Island, China, and also considering opportunities in South East Asia.
CNL Lifestyle Properties will acquire the US rights to the Wet ‘n’ Wild brand, as VRL sells its Phoenix, Arizona water park to the company and ends the lease of its Hawaiian counterpart from the company as well.
However, VRL will still hold an approximate 51 per cent stake in Wet ‘n’ Wild Las Vegas, which enjoyed a successful first season this year.
After repayment of debt, net cash proceeds from the sales to CNL Lifestyle Properties will stand at approximately A$27 million.
Despite the sales price, VRL will suffer an exchange rate loss of approximately A$2 million upon repatriating the proceeds to Australia.
The transaction is scheduled for completion by the end of November, just before the scheduled end of year launch of Wet ‘n’ Wild Sydney.
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