Macquarie Leisure announces $51 million uplift in Dreamworld valuation

Macquarie Leisure Trust Group (ASX:MLE) today announced an independent revaluation of the Dreamworld theme park had delivered a $51 million uplift to $226 million as at 30 June 2006 compared to $175 million as at 31 December 2005.

The Group’s chief executive officer, Greg Shaw, advised the 29 per cent gain primarily reflected a material change in valuation assumptions. The discounted cash flow has incorporated a lower discount rate of 14 per cent, which is in line with recent market sales activity for major Australian tourism and leisure assets. Mr Shaw said the uplift also reflected the Group’s ability to improve operational performance of the asset.

“The valuation reflects the consistent revenue and profit growth of Dreamworld to date, the park’s prominent location and the favourable zoning that underwrites future prospects for ongoing development and profit growth,” he said.

Mr Shaw highlighted the favourable market environment for the Dreamworld business was also taken into account in assessing the asset’s value. “Dreamworld derives approximately 80 per cent of its customers from the domestic market, which has been supported by steady population growth in South East Queensland, major tourism accommodation developments on the Gold Coast and the ongoing availability of discounted airfares to the region,” he said.

Moreover, Dreamworld’s ability to capture this demand by establishing affiliations with other leading brands has created a range of unique attractions that appeal to all ages Macquarie Leisure Trust Group 2 and demographic markets. Standout attractions such as Wiggles World and Nick Central combined with Australia’s largest collection of major thrill rides helped to secure the impressive increase.

The valuation was completed by Jones Lang LaSalle Hotels and will be incorporated into the 30 June 2006 accounts. The valuation excludes the excess development land to the north of the Dreamworld site that forms part of the future Coomera Town Centre and excludes any construction costs associated with the recently approved water park that is being developed adjacent to Dreamworld.

Mr Shaw also advised construction of the water park was progressing well with major ride structures being erected over the coming month. “The water park will provide a new level of customer experience with an inventory of new rides and attractions never before seen in the Australian market,” he said.

The water park will be operated as a separately gated attraction, allowing the Group to promote both parks through two and three day passes designed to suit local, interstate and international markets. The water park is on track to open for business before Christmas 2006 and in time for the peak January trading period.

Macquarie Leisure Trust Group Lodges Development Application for 'Citywalk at Coomera'

A fully integrated, unique shopping, entertainment and leisure destination.

The Chairman of Macquarie Leisure Trust Group, Mr Neil Balnaves, today announced that the Group has lodged a development application with the Gold Coast City Council to creat a major regional shopping centre on lands to the north of the Dreamworld Theme Park in the Coomera Town Centre - to be called 'Citywalk at Coomera'.

Planned for development by 2008, 'Citywalk at Coomera' will be a major regional shopping centre destination that is designed to service the expanding primary catchment area of Coomera, as well as the rapidly developing residential corridor from Helensvale to Beenleigh. The trade area of Coomera has been recognised as the Gold Coast's fastest growing residential suburb with population growth of 13.8 per cent per annum over the last five years with substantial growth forcast for the medium to long term. This buoyant local market will be supported by the broader Gold Coast residential and tourism market.

Macquarie Leisure Trust Grup CEO Mr Greg Shaw also said Macquarie Bank's Property Group is expected to participate in the development of Australia's first integrated retail and entertainment precinct at Coomera.

Dreamworld Theme Park is MLE's major asset and one of AUstralia's most successful tourism enterprises. Dreamworld is a Gold Coast icon with a track record of 24 years of successful trading and a major local employer with in excess of 1,200 staff during peak times. Today, Dreamworld achieves over 1.3 million patrons annually and expends over $A7 million per annum in marketing to local residents, domestic and international tourists.

"The patronage and profile of Dreamworld provides a unique anchor tenant platform for a shopping centre precinct. This development will represent the first entertainment destincation in Australia that delivers a unique blend of theme park fun and world class shopping adventure fully integrated into a themed retail environment," said Mr Shaw.

Following the establishment of the initial stage of 'Citywalk at Coomera', it is expected the Coomera Town Centre will be further developed and eventually incorporate a full range of community, commercial, residential and public open space precincts. The location of the Coomera Town Centre provides strong transport connections with direct access to Brisbane and the Gold Coast by either the M1 motorway or the existing rail system from the adjacent Coomera Railway station.

The proposed initial stage of the 'Citywalk at Coomera' development will incorporate two full line National brand Supermarkets, a major brand discount department store together with a large range of specialty retail outlets. In time it will incorporate a themed street entertainment and leisure precinct, including a cinema, with complimentary restaurants and fast food outlets. 'Citywalk at Coomera' will provide a vibrant linkage between Dreamworld and the Coomera railway station.

The development of 'Citywalk at Coomera' is expected to be overseen by the experienced team from Macquarie Property providing specialised retail development and project management expertise while also using local consultants to advise on retail, traffic and landscape design to ensure the best possible outcome for the local community, residents and visitors to the Coomera destination.

Proposed Sale of Dreamworld theme park

Dreamworld's Chief Executive Officer, Mr Fred Maybury, today announced the proposed sale of the Gold Coast theme park and Hobarts Antarctic, science and info-tainment centre, Antarctic Adventure, to the Macquarie Bank's Property Investment Banking Division.

The sale agreement, which is subject to the successful listing of a leisure trust by the Macquarie Bank, was today signed by Dreamworld and the Macquarie Bank.

Dreamworld was purchased by Mr. P.L Kua's Singaporean based company, Euro Asia Realty, in 1996 for $84 million.

Over the past two years Mr Kua has invested substantially in Australian tourism. In addition to the purchase of Dreamworld, and a subsequent substantial upgrade of the theme park and the opening of Antarctic Adventure in Hobart, sister company Euro Asia Leisure Management purchased hotel assets. The Rex Hotel (Sydney), the Heritage Hotel (Melbourne) and the Legends Hotel (Gold Coast).

Mr Kua has also received approval from the Gold Coast City Council for a 400 room resort style hotel adjacent to Dreamworld.