Patoka Capital LLC has sold six Regal Cinema locations for $44 million
By Braden Lammers – Reporter, Louisville Business First
Patoka Capital LLC has sold six Regal Cinema locations for $44 million, according to a news release from the New Albany, Ind.-based private-equity firm.
The six commercial properties were located in Missouri, South Carolina, West Virginia, Ohio and Pennsylvania. The properties were sold Sept. 30 to Spirit Realty Capital (NYSE: SRC), an Arizona-based real estate investment trust.
Chance Ragains, managing director and CEO of Patoka Capital, said in the release that Patoka Capital will use the proceeds from the sale of the theater buildings to boost its investment portfolio, which now stands at $150 million.
The company, which was formed last year, plans to use those funds for investments in real estate development and commercial property purchases, he said.
Ragains and his family formerly owned 25 Great Escape Theaters. The family sold the business to Knoxville, Tenn.-based Regal Entertainment Group in November 2012 for $91 million. The family had retained ownership of the six theater buildings that were sold recently.
Part of Patoka Capital's investment portfolio is Xscape Theatres.
Plans recently were announced to construct a new Xscape Theatres location in Blankenbaker Station Business Park in Louisville's East End.
In a recent interview with Business First, Ragains and Dan Von Behren, managing director and chief financial officer of Patoka Capital, said that the private investment firm is looking for investments in commercial real estate, light manufacturing and service-based businesses that are privately held.
Both said the investment firm is looking to invest in businesses that are in industries that are not heavily regulated.
By backing service-based businesses and light manufacturing businesses, Ragains and Von Behren said, Patoka can move quickly on acquisitions.
Patoka Capital is a private group of investors and is not an institutional fund, according to Ragains and Von Behren.