AURORA, ONT. — Magna Entertainment Corp. said a $16.5-million cash deal it struck to sell excess real estate in Ocala, Fla., has been cancelled.
Magna Entertainment said on Monday that the prospective purchasers, Lincoln Property Company and Orion Investment Properties, Inc., terminated the deal.
No reason was given.
Magna Entertainment said it still plans to sell the property, which is about 200 hectares in size, and will reinitiate its marketing efforts.
Magna Entertainment, North America's largest owner and operator of horse racetracks, made the deal in August.
It was subject to a 90-day due diligence period for the buyers.
The property forms part of the security for the company's bridge loan with a subsidiary of MI Developments Inc., Magna Entertainment's controlling shareholder.
Frank Stronach, head of the Magna International Inc. auto parts empire, is planning to buy back Magna Entertainment, which was spun off from Magna along with MI Developments.
Last month, MI Developments Inc. increased and extended a bridge loan to Magna Entertainment for its project at Gulfstream Park in Florida.
© Canadian Press
