International Speedway Corp. (NASDAQ: ISCA, ISCB) said Thursday it has agreed to sell its 676-acre parcel of property in Staten Island, N.Y., to KB Marine Holdings for $80 million, according to Associated Press.
The agreement calls for the transaction to close by Feb. 25, 2010, although KB Marine can get a $5 million credit if it closes by Dec 31.
ISC received a $1 million initial payment.
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International Speedway has been looking for a buyer interested in redeveloping the site for port-related and logistics activities, said Brian K. Wilson, an ISC vice president.
ISC said the deal is not expected to result in a material gain or loss. The company expects to book a cash tax gain of about $39 million to $42 million in fiscal 2010 as a result of the impairments previously taken to reduce the carrying value to the land's estimated fair value.
The company recognized impairments of approximately $85 million in its fiscal 2006 fourth quarter related to the company's decision to discontinue its speedway development efforts on Staten Island, and about $13 million in its fiscal 2009 third-quarter results to adjust the carrying value of its property at the time to fair market value.
Total net proceeds including the tax benefit will provide the company about $110 million to $115 million in incremental cash flow.
ISC owns and/or operates 13 of the nation's major auto racing tracks.
Shares fell 34 cents to close earlier at $27.12.
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