The McClatchy Co. has transferred ownership of several newspaper buildings and land, including The Olympian's, to its pension plan. The move meets a federal requirement on pension plan contributions and keeps The Olympian in its current building for 10 more years.
The Olympian occupies a 50,000-square-foot building and has two adjacent lots.
Friday’s announcement also affects McClatchy newspaper properties in Bradenton, Fla., Charlotte, N.C., Lexington, Ky., Macon, Ga., Myrtle Beach, S.C., and Rock Hill, S.C. All the newspapers will lease back the buildings from the company pension plan. The company has no plans to sell the newspapers.
“We expect our required pension contribution to be $50 million in 2011,” McClatchy President and Chief Executive Gary Pruitt said in a statement. “Rather than using cash, we’re contributing the equivalent in valuable property.”
About 5 percent of the pension plan has historically been invested in real estate through real estate investment trusts. The plan also owns stocks, bonds, commodities and other assets.