UPDATE 1-McClatchy shares soar on sale of Miami real estate

Fri May 27, 2011 12:15pm EDT

* McClatchy sells Miami real estate for $236 million

* Buyer is Bayfront 2011 Property LLC

* Will use most of the money for debt, pension

* Shares up 10.5 pct at $3.05

NEW YORK, May 27 (Reuters) - McClatchy Co (MNI.N) shares shot up as high as 16 percent on news the publisher of the Sacramento Bee and Miami Herald found a buyer for a parking lot and building in Miami.

McClatchy said on Friday it sold a parcel of real estate that includes the building of the Miami Herald Media Co and an adjacent parking lot for $236 million to Bayfront 2011 Property LLC.

As part of the deal, McClatchy will be allowed to stay rent free for up to two years while it looks for a new building.

The Miami Herald Co operates the flagship newspaper, El Nuevo Herald, related websites and other businesses.

The deal closes a chapter on the Miami real estate, a portion of which had been up for sale while the Miami Herald was still operated by the Knight Ridder Co. McClatchy acquired Knight Ridder, including the Herald, in 2006.

The company plans to use the most of the proceeds to fund its pension plan and pay off debt.

Bayfront 2011 Property is a subsidiary of Genting Malaysia Berhad (GENM.KL).

McClatchy shares were up 9.4 percent, or 26 cents, at $3.02 in midday trading. (Reporting by Jennifer Saba; editing by Andre Grenon)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.