Intrawest Corp. said Thursday it is selling an 80 per cent stake in the commercial properties at nine of its resort villages to CNL Income Properties Inc., a Florida-based real estate investment trust.
The commercial properties have a total value of $160 million, Intrawest said, adding that it will continue as property and leasing manager of all of the retail and commercial space involved.
The commercial properties include restaurants, retail and specialty shops. Resort lodging is not included in the deal.
"Creation of this partnership is another significant step in our transition to a management-intensive structure from a more capital-intensive one," said Joe Houssian, chairman, president and chief executive officer of Intrawest.
"This transaction will provide a significant recovery of capital as well as a partnership for future commercial development," Houssian said.
Based in Orlando, CNL Income Properties invests in real estate with an emphasis on recreation and lifestyle segments, such as golf resorts, marinas, vacation spots, and ski resorts and adjacent properties.
The agreement currently includes commercial properties at the following Intrawest villages:
- Whistler Creekside at Whistler Blackcomb, Whistler, B.C.
- Village of Baytowne Wharf at Sandestin Golf and Beach Resort, Destin, Fla.
- Village at Squaw Valley USA, Lake Tahoe, Calif.
- Village at Mammoth Mountain, Mammoth Lakes, Calif.
- Village at Copper Mountain, Copper, Colo.
- MonteLago Village at Lake Las Vegas Resort, Las Vegas, Nev.
- Village at Blue Mountain, Collingwood, Ont.
- Village at Snowshoe Mountain, Snowshoe, W.Va.
- Village at Stratton, Stratton, Vt.
The deal is scheduled to close before the end of December 2004.
Shares of Intrawest gained 25 cents, closing at $19.95 on the TSX.