Operator withdraws from Kapolei water park

Australian-based Village Roadshow Ltd., claiming that it’s too difficult to achieve a significant presence in the U.S. water park market, is pulling out as the operator of Wet ‘n’ Wild Hawaii.

The company said Wednesday that now is an appropriate time to divest its water park interests in the United States.

"The competitive pressure to acquire properties has been increasing with the upturn in the U.S. economy, and VRL believes that management time and capital can be better focused in countries where the market is not mature, and higher returns possible," Village Roadshow said.

Management at Wet ‘n’ Wild Hawaii could not be reached Wednesday because the Kapolei park was closed as part of its regular schedule, and a spokeswoman for CNL Lifestyle Properties Inc., the owner of the park, could not be reached for comment regarding whether there would be any changes at the facility.

CNL Lifestyle Properties, a Florida-based real estate investment trust, acquired the park for $25.8 million on May 6, 2009, and changed the name from Hawaiian Waters Adventure Park. CNL leased the park back to Village Roadshow, one of the largest theme park operators in Australia. Village Roadshow had bought the park for $27 million in 2008.

Village Roadshow said Wednesday that it also has agreed to sell its wholly owned Wet ‘n’ Wild Water Park in Phoenix to CNL Lifestyle Properties for about $25.1 million after debt repayments. In addition, Village Roadshow said it will continue to hold a 51 percent interest in Wet ‘n’ Wild Las Vegas, which opened in May and has had a successful first season.

The Kapolei water park, which has more than 25 rides and attractions, was built for $14 million and has gradually grown since opening in 1999.

Village Roadshow said it continues to examine opportunities for theme parks, including water parks, in Asia. The company is developing a water park on Hainan Island, China, in conjunction with a marine theme park under construction by R&F Properties.

Village Roadshow will manage both those properties and said it also is investigating other opportunities in Southeast Asia.

The company said its latest water park, Wet ‘n’ Wild Sydney, is scheduled to open next month in Australia.