$20 million acquisition will include option to expand iconic resort village
TORONTO, Dec. 27, 2012 /CNW/ - Skyline International Development Inc. will soon add another jewel to its resort property crown.
Skyline, Canada's leading owner, operator and developer of resorts and destination communities, has entered into a binding agreement of purchase and sale and will be investing $20 million to acquire both retail and undeveloped residential land interests in and adjacent to the renowned Blue Mountain Village at the base of Blue Mountain Resort which offers ski, golf and lodging.
Under the retail portion of the agreement, Skyline will acquire 50% of existing commercial retail space within the Blue Mountain Village from current owner Intrawest ULC. In addition, Skyline will manage the remaining 50% of the Village's retail space. Skyline will also acquire the land to build an additional 20,000 sq. ft. of retail space to expand the Village retail. Skyline's retail interest under agreement at Blue Mountain is currently generating $1.5 million of net operating income.
In the residential portion of the acquisition, Skyline will acquire all remaining developable land in and adjacent to the Village, planning to double the Village's current residential and condo-hotel footprint. Skyline intends to develop over 1,200 residential and condo-hotel units, townhouses and single-family homes in the years ahead.
"This agreement reinforces our vision to be the leader in the Canadian destination-community industry," said Skyline Chairman and President Gil Blutrich. "With this acquisition, Skyline will become the largest owner of resort and destination communities in Ontario. Skyline will own properties in the province's five fastest-growing hubs—Toronto, Collingwood, Midland, Huntsville and Barrie—which gives us over 7,000 future superior residential units and home sites and a strong strategic advantage for the foreseeable future. By adding Blue Mountain Village resort lands, it allows us to expand services for the members of our prestigious SkyLife Club with a new club lounge for our members in the centre of the Village with access to Blue Mountain's wealth of amenities, from skiing to adventure activities and golf, on a year-round basis."
Founded in 1998 by visionary entrepreneur Gil Blutrich, Skyline has expanded rapidly, growing its asset base from $20 million (in 2000) to close to $300 million today with the acquisition of premier resort properties in Southern Ontario. The company recently introduced its innovative SkyLife Club, Ontario's first year-round city and country club offering family-oriented recreational, leisure and social activities and benefits through the premier portfolio of Skyline Hotels & Resorts.
Skyline's unique vision and go-to-market strategy to date have focused on reinvigorating potentially high-income properties by renovating their existing hotels and residential units, then expanding their residential and retail footprint with an emphasis on turning those properties into lifestyle communities. The firm has achieved impressive results by introducing scalable systems and corporate efficiencies to these properties and restoring maximum profitability.
Blue Mountain Resort averages more than 700,000 skier visits per year. The resort attracts an estimated 1.4 million visitors each year, while the surrounding Southern Georgian Bay area lures 9.1 million visitors and $1 billion in tourism-related revenue annually—much of which is derived from the 6 million residents of the Greater Toronto Area, a two-hour drive southeast.
The anticipated closing date for the acquisition is late February 2013.
"Blue Mountain Village and real estate development is an ideal fit for our organization given Skyline's experience as an owner and manager of other well-known Ontario resort properties such as Deerhurst and Horseshoe Resorts," said Skyline CEO Michael Sneyd. "This acquisition not only makes financial sense and aligns with our long-term growth strategy, but strengthens our market position and creates opportunities for Skyline's continued Canada-wide expansion."
(Additional photos available)
About Skyline International Development Inc.:
A leading Toronto-based developer of hospitality properties and destination communities, Skyline International Development owns over two million square feet of real estate, has over 2,600 acres and nearly 1,300 rooms in its holdings, as well as four Ontario spa outlets, and employs more than 1,500 staff. Its unique asset mix includes a partnership and asset management interest in downtown Toronto's iconic The King Edward Hotel, as well as ownership of, under the Skyline Hotels & Resorts brand, the city's contemporary boutique Cosmopolitan Hotel and Pantages Hotel. Skyline's resort assets include landmark Deerhurst Resort with 45,000 sq. ft. of meeting space lakeside in Muskoka, and Horseshoe Resort, home to Toronto's closest ski area as well as an adventure park. The company is also creating residential destination communities at Deerhurst, Horseshoe and, most extensively, at the historic lakefront of Port McNicoll, Ontario, a restored gateway to the 30,000 Islands, a UNESCO World Biosphere Reserve. In late 2011, the privately owned company raised CDN $27 million in financial institution private equity to fund continued growth and also acquired its first U.S. asset The Cleveland Arcade and Hyatt Regency Cleveland at the Arcade. For more information see www.skylineinvestments.com
SOURCE Skyline International Development Inc.
Image with caption: "Blue Mountain Village - Blue Mountains, Ontario, Canada (CNW Group/Skyline International Development Inc.)". Image available at: http://photos.newswire.ca/images/download/20121227_C3471_PHOTO_EN_22219.jpg