Intrawest/CNL Income Properties Partnership completes second tranche of property acquisition
December 17 2004 - 8:30AM
PR Newswire (US)
Intrawest/CNL Income Properties Partnership completes second
tranche of property acquisition ALL DOLLAR AMOUNTS ARE IN U.S.
CURRENCY VANCOUVER, Dec. 17 /PRNewswire-FirstCall/ -- Intrawest
Corporation (Intrawest) and CNL Income Properties, Inc. today
announced the two companies' recently created partnership has
acquired 298,000 square feet of retail and commercial property at
five Intrawest resort villages: the Village of Baytowne Wharf at
Sandestin Golf and Beach Resort, Florida; the Village at Mammoth
Mountain, California; the Village at Copper Mountain, Colorado; the
Village at Snowshoe Mountain, West Virginia; and the Village at
Stratton, Vermont. This second of three tranches of a previously
announced agreement has a total purchase price of approximately
$80.6 million. In order to facilitate the sale of the five
properties to the partnership, Intrawest provided bridge financing
of $45 million on commercial terms. Pursuant to the terms of the
bridge financing, CNL Income Properties is obligated to refinance
the loan. CNL Income Properties anticipates that permanent
financing will be arranged before June 30, 2005, but there can be
no assurance that the loan will be refinanced by that time. At the
closing of the transaction, the net cash proceeds to Intrawest were
approximately $28.4 million. "We're pleased to acquire these
world-class resort villages located in popular ski and tourist
destinations, which aligns with our strategy to invest in quality
recreational and lifestyle-related real estate," said Byron
Carlock, president of CNL Income Properties. "We believe these
properties lay a solid foundation for our growing portfolio and are
especially excited to further our relationship with an industry
leader such as Intrawest." "The partnership between Intrawest and
CNL Income Properties is a great example of how Intrawest is
focusing on its expertise-based business model," said Joe Houssian,
Intrawest's chairman, president and chief executive officer. "It
allows Intrawest to sell assets more appropriately owned by a real
estate investment trust, and we maintain our relationship with
commercial tenants and the ability to deliver the Intrawest
customer experience in our resort villages." The partners agreed to
split the original transaction into three tranches due to its size
and complexity. The first tranche, which closed in early December
2004 with a total purchase price of approximately $30.3 million,
included retail and commercial properties at two Canadian resorts:
Whistler Creekside at Whistler Blackcomb, British Columbia and the
Village at Blue Mountain in Collingwood, Ontario. The third tranche
includes two of Intrawest's newest developments: MonteLago Village
at Lake Las Vegas Resort, Nevada and the Village at Squaw Valley,
California. No date has been set for the closing of these
properties. The completion of the third tranche is subject to
further negotiation and the satisfaction of a number of conditions,
including finalizing the financing, settling and executing
definitive documentation, completing the due diligence, and meeting
customary closing conditions. There are no assurances that all of
the closing conditions will be satisfied or that CNL Income
Properties will acquire these properties. The partnership between
Intrawest and CNL Income Properties was formed to acquire retail
and commercial space at nine Intrawest resort villages. Intrawest
owns a 20 percent minority interest in the partnership and
continues in its role as property and leasing manager of all of the
retail and commercial space involved. CNL Income Properties owns an
80 percent interest in the partnership. CNL Income Properties, Inc.
is a Maryland corporation that intends to qualify as a real estate
investment trust (REIT) that invests in income- producing real
estate with an emphasis on recreation and lifestyle segments, such
as ski resorts, golf courses, manufacturer's outlet centers,
marinas, campgrounds and vacation ownership interests. The REIT is
an affiliate of CNL Financial Group, Inc. (CNL), one of the
nation's largest, privately held real estate investment and finance
companies. Headquartered in Orlando, Fla., CNL and the entities it
has formed or acquired have more than $15 billion in assets -
including $2.5 billion managed for third-party investors - and have
interests in more than 5,100 properties across North America. For
more information, visit http://www.cnlonline.com/ Intrawest
Corporation (IDR:NYSE; ITW:TSX) is one of the world's leading
destination resort and adventure travel companies. Intrawest has
interests in 10 mountain resorts in North America's most popular
mountain destinations, including Whistler Blackcomb, a host venue
for the 2010 Winter Olympic and Paralympic Games. The company owns
Canadian Mountain Holidays, the largest heli-skiing operation in
the world, and a 67 percent interest in Abercrombie & Kent, the
world leader in luxury adventure travel. The Intrawest network also
includes Sandestin Golf and Beach Resort in Florida and Club
Intrawest - a private resort club with nine locations throughout
North America. Intrawest is developing five additional resort
village developments at locations in North America and Europe.
Intrawest is headquartered in Vancouver, British Columbia. For more
information, visit http://www.intrawest.com/. Safe Harbor Statement
Under The Private Securities Litigation Reform Act
------------------------------------------------------------------------
of 1995 ------- Certain statements and information included in this
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations,
estimates and projections about future events. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Companies to be materially different from any
future results, performance, or achievements expressed or implied
in such forward-looking statements. The Companies disclaim any
obligation or undertaking to publicly release any updates or
revisions to any forward-looking statement contained herein to
reflect any change in their expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based. Although the Companies believe their current
expectations are based upon reasonable assumptions, the Companies
can give no assurance that expectations will be attained or that
actual results will not differ materially. For additional
information: Mr. Tim McNulty, director, investor relations at (604)
623-6620 or Ms. Carolyn B. Gosselin, APR, CNL Chief Communications
Officer at (407) 540-2505 or DATASOURCE: Intrawest Corporation
CONTACT: Mr. Tim McNulty, director, investor relations at (604)
623-6620 or ; Ms. Carolyn B. Gosselin, APR, CNL Chief
Communications Officer at (407) 540-2505 or
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