NY Times to buy, then sell printing plant
NEW YORK (Reuters) - New York Times Co. will buy and then sell a printing plant in Edison, New Jersey, rather than subleasing it in a more economically sound transaction, the company said in a filing on Wednesday .
The company said in the regulatory filing that it agreed in March to buy the facility for $140 million and then agreed on April 5 to sell it and related property to KIF Property Trust for $92 million.
The Times originally planned to sublease the plant through 2018 in a deal struck in 1987 that committed the company to "above-market" rent increases. The original deal required the company to restore the plant to its prior state at the end of its term.
Moreover, in order to attract subleasees, the Times would need to convert the property into a warehouse at a significant cost and delay.
As part of the new deal, it expects to record a net loss of $65 million to $72 million related to the purchase and sale and a loss of $70 million to $75 million for accelerated depreciation expense.
The purchase and sale are expected to close in the second quarter.
