HMV Group has agreed to sell its west London venue Hammersmith Apollo for £32m.
The entertainment group has conditionally agreed the deal with Stage C, which Limited is jointly owned by Ansco Music Club Limited – Anschutz Entertainment Group (AEG) – and Getgo Consulting.
The disposal has allowed HMV to amend its existing £220m bank facility with its existing lenders and extended it to September 30 2014.
HMV, which took on the venue in 2010, said the move will allow management to focus more closely on HMV’s strategy to develop its core retail offering.
Completion of the disposal is expected to occur no later than the end of August following shareholder banking and regulatory approval.
Hammersmith Apollo, which is primarily used for music and comedy performances, generated profit before taxation of £1.9m in the nine months ended April 30 2011. The more than 5,000 capacity venue had gross assets of £20.7m as at April 30 2011.
HMV chief executive Simon Fox said: “The Hammersmith Apollo is an iconic London venue and it has been a privilege to own it over the last three years. However the sale will enable HMV to extend its bank facilities, strengthen its capital structure and ensure a strong future for the group.
“AEG has a great track record in running live venues. They and their partner buyer CTS Eventim, the leading European ticketing services provider, have impressive and exciting plans for the Hammersmith Apollo and we wish them well.”
The retailer said it will update the market on the sale of its remaining HMV Live business in due course.