Killington Officially sold

[MadPadraic]

Given inflation has been small...its interesting that their Colorado property is work $75 million more than Killington and Heavenly combined.

 

[ski_resort_observer]

Given inflation has been small...its interesting that their Colorado property is work $75 million more than Killington and Heavenly combined.

Th diference is in the package and the markets, it's a big diference. SP Land already owns the developement rights at the kmart base(476 acres) from 2004 deal. The Boat deal includes alot of expensive real estate. Both have similar skier visits but dollars/skier visit are quite diferent.

 

[MadPadraic]

I still find it very surprising. How much real estate was part of the Heavenly deal? Was the land where the new Marriott was build part of it?

 

[Geoff]

SP(Shafer Property) Land Company is a large independent commercial real estate developer based in Dallas. In 2004 they purchased the base developement rights at kmart from ASC/Oak Hill. In 2005 Centrex(who recently bought Loon) purchased developement rights from SP Land for 213 of the 476 acres. They(Centrex) recently backed out of the deal. As far as any prior relationship between Powdr and SP Land I have found nothing. Since they have been partnered with ASC/Oak Hill for the past 3 years at kmart I doubt they could ride the fence and have partnerships with both.

Powdr Corp will run the mountain, SP Land will do the real estate. I didn't know much about Powdr until a couple of months and they appear to run a lean, mean profit producing machine.

The next couple of years regarding NE ski resorts is going to be very interesting. Does this have any effect on the Bush? Will most of those A41 skiers go back to smaller hills?

Sort of....

SP Land isn't a developer. It was created from Ski Partners 2000. Ski Partners was a shell corporation funded by a real estate investment syndicate called Eiger Fund I to loan money to ASC at junk bond rates with the loans secured by ASC real estate. A big chunk of the money in that fund comes from an H.L. Hunt oil barron family trust. When ASC defaulted on that note, Eiger/Ski Partners grabbed a 75% interest in the land Killington Ltd got at the base of Killington for the land swap for Parker's Gore and put that interest in a shell corporation called SP Land. Killington Ltd had the other 25% interest in that land. Eiger merged with 2M Real Estate in 2004 and is now called E2M Partners.

http://www.e2mpartners.com/properties/skipartners.html

http://www.eiger-inc.com/

No telling where the $83.5 million came from to buy Killington since Eiger doesn't have that kind of cash sitting idle in any of their 4 funds. SP Land might have borrowed it (at much better rates than the 12% ASC was paying). At more reasonable interest rates, Killington should be able to generate enough operating profit to pay the interest. SP Land already tried to unload the most desirable 213 acres on Centex. I don't think anybody knows if SP Land now intends to fund a Killington Village project since they'd also have to dump a ton into the resort to attract the kind of wealthy customer base that would buy multi-million dollar trophy homes. It wouldn't surprise me if SP Land flips the whole Killington deal to some developer at a whopping profit.

One would assume that Killington will go back to expensive season passes. In the Preston Smith years, break even on a season pass was 21 ski days. That would price a pass at $1400 or so with a modest price break for buying it early. That'll displace an awful lot of people who bought the cheap ASC Bronze passes. I suspect most in the New York/Connecticut market will end up as day ticket skiers since they don't have access to the Maine and New Hampshire ski areas that will still be offering discounted passes.

 

[Marc]

...and hopefully coming down on the same side. :lol:

lol, only if it is planned that way. Nice avatar, btw. EXTREME SKINNING!

 

[ski_resort_observer]

I was familiar with your links, as you can see Shafer Property might be involved. I think Ski Partners 2000 is the l foundational shell. It's all a paper game. It's been widely reported that SP Land is indeed the developer. Why would a holding company formed by ASC be involved with Powdr? Thanks for the additional info. :lol:
http://www.e2mpartners.com/properties/shafer.html

 

[Phildozer]

Next Prediction

LBO will be buying Sunday River.

 

[tekweezle]

with Mt Snow and Killington sold, I am going to have less and less places to use my $10 ASC/visa coupons .....

 

[millerm277]

with Mt Snow and Killington sold, I am going to have less and less places to use my $10 ASC/visa coupons .....

They're still good through the rest of this season.....

 

[ctenidae]

Kind of interesting looking at some of our older discussions on ASC. At some point, we touched on pretty much everything that's happened so far.

 

[koreshot]

Cool... now I can hate Killington even more than I do now!

I really hope this sale means that they will make snow earlier in the season that they have been recently. Unlikely...

 

[ski_resort_observer]

Kind of interesting looking at some of our older discussions on ASC. At some point, we touched on pretty much everything that's happened so far.

Did you notice that the stock has climbed about 50% in the last two days? I thought long and hard about jumping in yesterday...oh well....no guts no cha-ching for me...lol

 

[Geoff]

I was familiar with your links, as you can see Shafer Property might be involved. I think Ski Partners 2000 is the l foundational shell. It's all a paper game. It's been widely reported that SP Land is indeed the developer. Why would a holding company formed by ASC be involved with Powdr? Thanks for the additional info. :lol:
http://www.e2mpartners.com/properties/shafer.html

Ski Partners (and then SP Land) are shell companies of Eiger / E2M Partners. Ski Partners was a lender to ASC with the note secured by real estate. When ASC defaulted on the note, the real estate (or at least 75% interest in the real estate) went to SP Land. ASC did not form the company.

Near as I can tell, Shafer Property is a cut & paste bug in the e2mpartners web site.

If you click on the skipartners link: http://www.e2mpartners.com/properties/skipartners.html
the page title is "Shafer Property Company."

Now look at this page which has the same page title: http://www.e2mpartners.com/properties/shafer.html
Shafer Property Company does strip malls in Texas. It's hard to believe they could possibly have any involvement in Killington. ...unless you think that's an appropriate quality level for the village.

 

[ctenidae]

Did you notice that the stock has climbed about 50% in the last two days? I thought long and hard about jumping in yesterday...oh well....no guts no cha-ching for me...lol

That would have been a nice one. I wonder how long it'll stay up. Hard to drum up much investor interest when 65% of the voting stock is controlled by one person.

 

[kickstand]

with Mt Snow and Killington sold, I am going to have less and less places to use my $10 ASC/visa coupons .....

I was this ('_') close to canceling my REI Visa and picking up as ASC Visa at the end of 2006. Thank God I'm a procrastinator.

 

[tekweezle]

Did you notice that the stock has climbed about 50% in the last two days? I thought long and hard about jumping in yesterday...oh well....no guts no cha-ching for me...lol

i think I read that ASC stock debuted at 18$ and right now is somewhere around 38 cents. talk about not being worth the paper it;s written on.....

 

[ski_resort_observer]

i think I read that ASC stock debuted at 18$ and right now is somewhere around 38 cents. talk about not being worth the paper it;s written on.....

It did IPO at $18 but it has jumped again today to .62, pretty much an increase of 100% from the opening bell on Tues....dangit! :lol:

 

[tekweezle]

everything regarding ASC smells funny....and not exactly "ha ha funny". more like "it;s stinks" funny. still I bet someone just might be making a killing on this via a "pump and dump". i wonder how much you;d have had to have bought at 38 cents to make any serious money at 62 cents. and you;d still have to find a buyer for what is probably universally regarded as worthless stock in a dying company.

sort of like whenever Apple makes some arbitrary announcement and their stock goes up. I wonder if there is a corresponding dividend being payed out.

 

[ski_resort_observer]

everything regarding ASC smells funny....and not exactly "ha ha funny". more like "it;s stinks" funny. still I bet someone just might be making a killing on this via a "pump and dump". i wonder how much you;d have had to have bought at 38 cents to make any serious money at 62 cents. and you;d still have to find a buyer for what is probably universally regarded as worthless stock in a dying company.

sort of like whenever Apple makes some arbitrary announcement and their stock goes up. I wonder if there is a corresponding dividend being payed out.

It's actually a heck of alot easier than you think. :smile: If the "street" thought it was a dying company you wouldn't have so many shares being bought. The next week or so should be very telling as to where things are going.

This is actually the second time this has happened in the last 2 years +. Back in Dec 04 the stock when from .25 to .70 in less than a month. Missed that boat too....:lol:

 

[tekweezle]

i wonder how much if this is being done by people who know each other. conspiring to drive up the price by selling it to each other like a ponzi scheme. or does that only happen in the movies?