Magic Media Company up for sales - IEG as financial advisor
Sparkasse Koeln-Bonn, the German local savings bank, has retained IEG to sell Magic Media Company, the company that manages the MMC studios in Cologne.
German investment banking house IEG is mandated to sell the management company of the studio only as the property itself is still owned by property fund Immobilienfonds Koeln-Ossendorf-Huerth in a limited partnership, a source close to the process said. Sparkasse Koeln-Bonn owns 100% of MMC via an investment holding.
MMC operates 20,000 square metres of studios that are almost fully booked with a number of private broadcasting companies having their event shows such as Got Talent and Pop Idol produced there. It has a turnover of around EUR 40m, about 100 employees and provides a number of media production complementary services. It is breaking even, according to the source.
Teasers and NDAs are being sent out to potentially interested parties, the source said. The relative complexity around the refinancing of the property and the long term lease could make for a longer process, which could mean a deal being completed by the summer or autumn of this year.
The sale of MMC needs be completed by the end of 2012 as part of stipulations laid down by the European Commission as conditions for public assistance to Sparkasse Koeln-Bonn. The studio is likely to be sold to a German or European studio operator. Broadcasting companies using the studio will also keep a close eye on the process although they are unlikely to be willing to invest in MMC, the source said. A propriety management company could also be interested, should property fund Immobilienfonds Köln-Ossendorf-Hürth decide to dispose of its investment, the source added.