Dreamworld parent company Ardent Leisure borrows $225m ahead of investment in parks

The new boss of a Gold Coast theme park has hinted at where some of a $225 million loan to the company will be spent — and thrill seekers will be double delighted.

Children playing in water in Pipeline Plunge. A cash splash from the park’s parent company will inject new life into the park.

THE new boss of Dreamworld has hinted at major announcements “in the very near future” after its parent company landed a $225 million financing deal.

In an announcement to the ASX this afternoon, Ardent Leisure Group said it would borrow $225 million through its US-based Main Event business, using part of the refinanced funds to pay off the company’s bank loans, which its half-yearly accounts said were $97.6 million.

Ardent said $80 million cash would support investment in theme parks.

Dreamworld CEO John Osborne. Picture: NIGEL HALLETT

Dreamworld CEO John Osborne said the announcement was great news for Dreamworld.

“Essentially it allows us to proceed with our master planning process with a little more confidence and that will mean identifying what happens in the next five to 10 years for Dreamworld,” he said.

“I’m really pumped about making sure we get back to a profitable situation and the refinance gives us the opportunity to start making some announcements in the very near future.

“We’ve got some very popular attractions here already and we’re back in business already, but clearly we want to increase and replace some of the attractions we’ve got.

“I’d certainly be looking at a new major thrill ride for the park — probably two of those I would have thought.”

Scott Jolly and Tracy McDonald at the front of Dreamworld’s Buzzsaw ride. Picture: Kit Wise

Ardent shares closed 0.45 per cent higher at $1.115 after a daily high of $1.145.

Mr Osborne said the park’s 1000 staff were focused on running its current offerings well, with more rides in operation today than had operated at any one time for the past two years.

He said a suite of entertainment planned for the school holidays and beyond would bring more visitors back to the Coast icon.

“We want to keep growing the business and reinvigorating its reputation and getting it back to being the icon that it always has been.”

Grand illusionist Cosentino is a world class act who will appear at Dreamworld for two shows a day April 6-21. Picture Glenn Hampson

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Ardent Leisure logged a $21.8 million loss for the first six months of the financial year as costs from the 2016 Thunder River Rapids tragedy continued to drag on the company’s bottom line.

However, the company said it expected to return to positive cash flow in the next 12 months. The State Government announced last month it would spend $2.7 million in partnership with Dreamworld to expand the park’s Corroboree and wildlife area.

It will include the Dreamworld Future Lab, a “world-class’ facility which will be the state’s first native animal genome research facility.

The 25-year-old Wipeout was decommissioned in March and the site of the former Thunder River Rapids Ride has been completely cleared while the park prepares to launch its Sky Voyager virtual reality ride.