The struggling newspaper chain sold 14 acres and its bayside building to a Malaysia-based company, which plans to develop the property as an entertainment complex. (A long-stalled agreement to sell about 10 acres of that land for $190 million a a Miami developer was terminated in January.) The cash deal allows the Miami Herald and El Nuevo to continue to operate from their current location rent free for two years as owner McClatchy searches for a new location. The Herald reports:
McClatchy will use the $163 million from the sale to bolster the company’s pension plan and $65 million to pay down debt. The remaining monies will be used to pay for relocation and taxes associated with the sale.
“While locating a newspaper operation on the bay may have made sense in the past, it no longer is the best fit,’’ said Gary Pruitt, McClatchy’s chairman and chief executive.