Vancouver: Lions Gate Entertainment is selling its 14-acre studio complex in North Vancouver two years after acquiring it for $26 million in cash and debt.

Vancouver-based commercial realtor Avison Young signed a listing agreement in July to sell Lions Gate Studios for $42.5 million, but it has not yet been formally listed. Peter Waal, vp of investor relations at Lions Gate, says the prospective sale does not mean lge is selling other assets. ‘We don’t need to be in the real estate business,’ he says, adding that proceeds will be used elsewhere in the business.

‘All we need is the box and management of the box.’ Thus, lge will unload the seven-stage studio facility with a lease-back clause; lge will retain a management contract for perhaps 10 years with the name and management of the facility unchanged. ‘No other divisions are for sale,’ insists Waal, responding to rumors of other lge assets being on the block. ‘When you’re trading at a discount from your book value, those kinds of rumors circulate.’ Continued on p. 6

lge’s book value is $183 million compared to its market capitalization on Aug. 4 of about $73 million.

Waal also denies rumors that founding chair, ceo and 14% owner Frank Giustra will leave the company to return to the stock brokerage business.

The umbrella company owns Cine-Groupe, Lions Gate Films, Lions Gate Television and 45% of Mandalay Pictures.

In July, lge confirmed a year-end loss of $14.1 million ($0.58 per share). Revenues were up 85% to $118.3 million, but charges such as the company’s $5.4 million equity stake in the losses of Mandalay Pictures contributed to the company’s overall losses.