Town Sports International Holdings, Inc. (Nasdaq:CLUB), the owner and operator of New York Sports Clubs, is pleased to announce the entry into an agreement to sell its property located at 151 East 86 th Street, New York to an affiliate of Stillman Development International, LLC for a price of $82 million, subject to certain adjustments. The transaction is subject to various closing conditions, and the parties expect the transaction to be completed on or about March 31, 2014.
In connection with the sale of the property, Town Sports International will continue to operate its NYSC health and fitness club at this location under a lease with the purchaser of the property. After a period of two years, the purchaser, upon prior notice, may exercise its right to terminate the lease in order to commence the demolition of the premises and a currently adjacent property, followed by the construction of a new high-rise multi-use property. The parties have agreed to enter into a new lease for a health and fitness club space to be located at the same location as the current fitness club following completion of development of the new high-rise building.
Bob Giardina, Chief Executive Officer of Town Sports International, commented: "We are pleased to announce this agreement to monetize our 151 East 86 th Street location in New York that will generate substantial value for our stakeholders. We are also excited for the opportunity to replace our 35 year old club with a brand new club at this same location upon the completion of the construction of a luxury high-rise building. ”
Forward-Looking StatementsStatements in this release that do not constitute historical facts, including, without limitation, statements relating to future expectations regarding the sale of the property described above and other statements that are predictive in nature or depend upon or refer to events or conditions, or that include words such as “expects,” “anticipated,” “intends,” “plans,” “believes,” “estimates” or “could”, are “forward-looking” statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control, including, among others, the ability of the parties to satisfy closing conditions to the sale of the property described above, the level of market demand for the Company’s services, economic conditions affecting the Company’s business, the geographic concentration of the Company’s clubs, competitive pressures, the ability to achieve reductions in operating costs and to continue to integrate acquisitions, environmental initiatives, any security and privacy breaches involving customer data, the application of Federal and state tax laws and regulations, the levels and terms of the Company’s indebtedness, and other specific factors discussed herein and in other releases and public filings made by the Company (including the Company’s reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission). The Company believes that all forward-looking statements are based on reasonable assumptions when made; however, the Company cautions that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, one should not place undue reliance on these statements. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to update these statements in light of subsequent events or developments. Actual events or results may differ materially from anticipated events or results or outcomes discussed in any forward-looking statement.