Struggling UK entertainment retailer HMV Group has agreed a deal to sell its London Hammersmith Apollo live entertainment venue for £32m sterling to Stage C Limited.
HMV had earlier this month forecast a worse than expected loss for the 2011/12 year.
It said the sale - which is subject to shareholder approval - would allow the group to amend its existing £220m bank facility and extend it to 2014.
"The Hammersmith Apollo is an iconic London venue and it has been a privilege to own it over the last three years. However, the sale will enable HMV to extend its bank facilities, strengthen its capital structure and ensure a strong future for the group," HMV chief executive Simon Fox said.
The west London venue plays host to leading acts from music, comedy, opera and ballet circuits.
The group said proceeds from the disposal, which is expected to be completed no later than the end of August, would be used in part to reduce its outstanding debt.
Stage C is jointly owned by London O2 operator Ansco Music Club, a subsidiary of US company Anschutz Entertainment, and a subsidiary of Munich-based CTS Eventim.
The sale is conditional on shareholder approval, banking approvals and Stage C securing regulatory approvals.
HMV said the sale allows it to focus on its core retail business. The deal follows a decision to place its HMV Live division, which runs 13 venues and a number of festivals including Lovebox in London and Global Gathering near Stratford-upon-Avon, under review.
While HMV has felt the pressure of the consumer spending squeeze as people turn to cheaper deals on the internet for music and film, it recently surprised the City by forecasting a return to profit in 2013 despite estimated losses of around £19m for the last financial year.
