Magna Entertainment Corp. Announces Agreement to Sell Excess Real Estate



    AURORA, ON, August 12, 2008 /CNW/ - Magna Entertainment Corp. ("MEC" or
the "Company") (NASDAQ:   MECAD; TSX: MEC.A) today announced that it has entered
into an agreement to sell approximately 489 acres of excess real estate
located in Ocala, Florida to Lincoln Property Company and Orion Investment
Properties, Inc. for a purchase price of $16.5 million cash, subject to a
90-day due diligence period in favor of the purchasers. If the purchasers
determine that their due diligence review is satisfactory and do not terminate
the agreement before the end of the 90-day due diligence period, then the
transaction would close 60 days thereafter, subject to the satisfaction of
customary closing conditions. The property forms part of the security for the
Company's bridge loan with a subsidiary of MI Developments Inc., the Company's
controlling shareholder, and the terms of the bridge loan require that any net
proceeds received from the sale of the property must be used to make
repayments under the bridge loan.

    MEC, North America's largest owner and operator of horse racetracks,
based on revenue, develops, owns and operates horse racetracks and related
pari-mutuel wagering operations, including off-track betting facilities. MEC
also develops, owns and operates casinos in conjunction with its racetracks
where permitted by law. MEC owns and operates AmTote International, Inc., a
provider of totalisator services to the pari-mutuel industry, XpressBet(R), a
national Internet and telephone account wagering system, as well as
MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty
percent interest in HorseRacing TV(R), a 24-hour horse racing television
network, and TrackNet Media Group LLC, a content management company formed for
distribution of the full breadth of MEC's horse racing content.

    This press release contains "forward-looking statements" within the
meaning of applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934, as amended
(the "Exchange Act") and forward-looking information as defined in the
Securities Act (Ontario) (collectively referred to as forward-looking
statements). These forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Act (Ontario) and include, among others, statements regarding:
expectations as to the timing of the closing of the Ocala lands sale;
expectations as to the satisfaction of the customary closing conditions;
expectations as to the use of the net proceeds from the Ocala lands sale; and
other matters that are not historical facts.

    Forward-looking statements should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or the times at or by which such performance or results will be
achieved. Undue reliance should not be placed on such statements.
Forward-looking statements are based on information available at the time
and/or management's good faith assumptions and analyses made in light of our
perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances and are subject to known and unknown risks, uncertainties and
other unpredictable factors, many of which are beyond our control, that could
cause actual events or results to differ materially from such forward-looking
statements. Important factors that could cause actual results to differ
materially from our forward-looking statements include, but may not be limited
to, material adverse changes in: general economic conditions; the popularity
of racing and other gaming activities as recreational activities; the
regulatory environment affecting the horse racing and gaming industries; our
ability to obtain or maintain government and other regulatory approvals
necessary or desirable to proceed with proposed real estate developments;
increased regulation affecting certain of our non-racetrack operations, such
as broadcasting ventures; and our ability to develop, execute or finance our
strategies and plans within expected timelines or budgets. In drawing
conclusions set out in our forward-looking statements above, we have assumed,
among other things, that we will continue with our efforts to implement our
debt elimination plan, but not on the originally contemplated time schedule,
and comply with the terms of and/or obtain waivers or other concessions from
our lenders and refinance or repay upon maturity our existing financing
arrangements (including our short-term bridge loan facility with a subsidiary
of MI Developments Inc., MEC's controlling stockholder, and our senior secured
revolving credit facility with a Canadian financial institution), and there
will not be any material adverse changes in: general economic conditions; the
popularity of horse racing and other gaming activities; weather and other
environmental conditions at our facilities; the regulatory environment; and
our ability to develop, execute or finance our strategies and plans as
anticipated.

    Forward-looking statements speak only as of the date the statements were
made. We assume no obligation to update forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
forward-looking statements. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect thereto or with respect to other forward-looking statements.

    

SOURCE: Magna Entertainment Corp.

For further information:

For further information: Blake Tohana, Executive Vice-President and
Chief Financial Officer, Magna Entertainment Corp., 337 Magna Drive, Aurora,
ON, L4G 7K1, Tel: (905) 726-7493

Organization Profile

MAGNA ENTERTAINMENT CORP.

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