CNL Resort Properties Sold!

[Jully]

Just saw this on Sugarloaftoday. http://www.firsttracksonline.com/2016/11/03/cnl-unloads-15-ski-resorts


It's been a long time coming for sure. Obviously won't have too much of an impact on operations, but starting next offseason Boyne will no longer have the excuse that CNL uncertainty is delaying lift upgrades at Sugarloaf!

 

[Smellytele]

So they bought 3 ski areas (Okemo, Sunapee and Crested Butte) for 132 mil and now are selling 14 for 374. Not sure how much they paid for the other 11 but seems they may have bought high and are selling low. They probably did make money with the lease backs over this time though.

 

[Hawkshot99]

Just saw this on Sugarloaftoday. http://www.firsttracksonline.com/2016/11/03/cnl-unloads-15-ski-resorts


It's been a long time coming for sure. Obviously won't have too much of an impact on operations, but starting next offseason Boyne will no longer have the excuse that CNL uncertainty is delaying lift upgrades at Sugarloaf!

They never should have been using that excuse in the first place. The land user is the one who decides what improvements to make, not CNL.

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[Jully]

They never should have been using that excuse in the first place. The land user is the one who decides what improvements to make, not CNL.

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Well they used it anyways. Not saying it was valid, just saying that now that excuse is gone! I'll be interested to see what gets said at the next SL annual meeting in the fall (assuming no lift upgrades happen this offseason).

 

[speeddemon]

damn, can't be a good omen for the sales price of Jay and others. I imagine that at that average price of $26m per resort, Jay maybe is at most an average resort in that mix of pretty strong ski resorts?

 

[Hawkshot99]

damn, can't be a good omen for the sales price of Jay and others. I imagine that at that average price of $26m per resort, Jay maybe is at most an average resort in that mix of pretty strong ski resorts?

Jiminy peak was included in the sale. 7 or 8 years ago CNL acquired them for roughly $32 million.

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[doublediamond]

but starting next offseason Boyne will no longer have the excuse that CNL uncertainty is delaying lift upgrades at Sugarloaf!

They will. Just change CNL to EPR. Two REITs are buying up the ski holdings of CNL.

 

[Telemechanic]

They never should have been using that excuse in the first place. The land user is the one who decides what improvements to make, not CNL.

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The REITs are definitely involved with capital improvements

 

[dlague]

The REITs are definitely involved with capital improvements

Why would they take on that expense if your goal is an investment trust. If they do I bet it is limited.

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[BenedictGomez]

CNL is not a very good bank.

 

[mbedle]

The price they sold is not directly related to the value of each resort. They have 30 +- year leases left on them, plus the new leases after that.

 

[Jully]

They will. Just change CNL to EPR. Two REITs are buying up the ski holdings of CNL.

While CNL in previous years may have been stingy, the last 2 years was specifically because they were looking to sell so they weren't going to put any money in (which doesn't entirely make sense to me from CNL's standpoint, but whatever). They excuse will be gone. EPR may still be just as unwilling as CNL was in years prior to them trying to sell though.

 

[Jully]

Why would they take on that expense if your goal is an investment trust. If they do I bet it is limited.

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Same reason you repaint your house and redo your bathroom before selling it. At least that's how I always looked at it.

Saw this in the newEnglandskihistory.com article which I found interesting.

In addition, EPR will provide up to $52 million in cash for improvements at Ski Holdings LLC areas at 8.5% interest.

http://www.newenglandskiindustry.com/viewstory.php?storyid=498

Wonder who is getting the improvements!