AMC sells theaters to trust

KANSAS CITY, Mo. --- Recently formed Entertainment Properties Trust has acquired three megaplex theaters from AMC Entertainment Inc. for $51.6 million as part of the exhib's previously announced plan to sell and lease back some of its theaters.

AMC, which announced in September plans to sell and lease back 17 megaplex theaters to raise nearly $400 million for continued expansion and debt reduction (Daily Variety, Sept. 11), will continue to operate the theaters.

12 theaters

Entertainment Properties previously said it planned to use proceeds of its Nov. 18 initial public offering to buy 12 theaters from AMC for $248.8 million. The company plans to borrow another $200 million and will use $137 million of that money to buy the remaining five AMC megaplexes.

An Entertainment Properties spokesman said the company acquired First Colony 24 in Houston for $19.1 million; Oak View 24 in Omaha, Neb., for $16.7 million; and Leawood Town Center 20 in Leawood, Kan., for $15.8 million.

In a press release Tuesday, the company said the Leawood Town Center acquisition was completed ahead of schedule, which is expected to increase funds from operations by .5¢ a share in the fourth quarter, based on projected 1998 rental income.