MUMBAI: PRNewswire-FirstCall, a leading provider of integrated media management services, today announced that it had purchased for $4.75 million an 18,000 square foot building in Hollywood into which the Company will consolidate its Highland Ave. and Eden FX operations.
Haig S. Bagerdjian, the Company‘s Chairman, President and Chief Executive Officer said, “The purchase of the building fixes our facility costs for these operations for the foreseeable future. We will avoid the need to negotiate long lease arrangements in the expensive Hollywood market as well as improve our annual EBITDA and cash flow by approximately $0.6 million each. We financed $1.2 million of the purchase price with a 10-year mortgage which provides for interest only payments at 7 per cent a year with the principal being due on the tenth anniversary date.”
Bagerdjian continued, “The new location will provide operational efficiencies by combining our two Hollywood locations which now occupy approximately 39,000 square feet. We expect the renovations to the building and move into the new location to be completed in the fourth calendar quarter at a cost of $1 to $1.5 million.”
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