SunTrust buys DreamWorks Animation property
An investment arm of SunTrust Banks Inc. has acquired DreamWorks Animation’s plush, Tuscany-style campus in Glendale.
In a regulatory filing on Thursday, DreamWorks Animation disclosed that SunTrust Equity Funding had signed an agreement earlier this week to purchase the DreamWorks campus for $185 million.
The sale includes 10 buildings on about 15 acres of land, which was developed two decades ago and is dotted with olive trees, oaks and a koi pond.
DreamWorks isn’t exiting the property, however. Instead, the studio behind the “Shrek” movies will lease the property from SunTrust Equity Funding, a subsidiary of the bank holding company based in Atlanta.
Under the lease agreement, DreamWorks will pay about $13 million a year over 20 years to SunTrust.
The Glendale company on Tuesday said it was selling the property, but did not disclose the buyer.
The sale is part of a series of cost-cutting steps at DreamWorks, which has overhauled management and announced plans to cut 500 jobs following a series of box-office flops.
The studio also refinanced a loan agreement with JPMorgan Chase to extend its line of credit to $450 million, up from $400 million.
DreamWorks posted a loss of $263.2 million in the fourth quarter due to restructuring costs and impairment charges from its recent film releases.
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