Skyline Land For Sale Deerhurst, Horseshoe, Blue Mountain | RENX
Freed Corp. pay $ 210 million to acquire Deerhurst Resort, Horseshoe Valley Resort in Ontario and the Blue Mountain Resort development lands from Skyline Investments Inc., the firms announced Monday morning.
The transaction includes the creation of a new subsidiary by Toronto-based Freed, to be called Resort Communities LP. Skyline will take a 29% stake in Resort LP, which represents approximately $ 33 million of the purchase price.
The transaction is expected to close on or around October 31.
âThis is an important milestone for Skyline as it provides significant new liquidity to capitalize on our stated strategy of redeploying our investment and operational focus from resorts and development land to hotels,â said the CEO of Skyline, Blake Lyon, in the ad.
âThis transaction represents one of the largest resort sales in Canada in the past 15 years, according to Beechwood Real Estate Advisors who advised Skyline on the transaction, and we are delighted to be a 29 percent partner. of Resort LP with Freed, who will now own an expanded portfolio of premier resorts in Ontario, Canada.
Well-known Ontario resorts
The properties are among Ontario’s best-known resorts, all located in prime resort areas; Blue Mountain is in Collingwood; Deerhurst in Huntsville; and Horseshoe Valley is just outside of Barrie.
“This transaction allows us to realize the full net asset value of our Canadian resorts, while participating in the value creation that Freed’s proven development team can deliver,” Lyon said in the statement.
âSkyline’s investment partner in Blue Mountain, Serruya Private Equity, also expressed their satisfaction and support for this transaction.
As part of the transaction, Freed will transfer its existing interest in the Muskoka Bay resort to Resort LP, for a valuation of $ 90 million.
Muskoka Bay is an 869-acre four-season luxury resort community in Gravenhurst, between Horseshoe and Deerhurst. Muskoka Bay has 65 hotel rooms and villas owned or managed by Freed and one of the top 10 golf courses in Canada, according to the ScoreGolf ranking.
âAcquiring these iconic resort properties will allow us to execute our strategy of modernizing the traditional resort community market for optimal and optimal use through design-driven development and the benefits of world-class amenities. with all-season access, âFounder and CEO Peter Freed said in the release.
âIn addition, the acquisition of these resorts further stimulates the growth of the hotel and resort sectors for Freed. “
Financial details of the transaction
Other financial details of the transaction involve several elements in addition to the stake in Resort Communities LP.
At closing, Skyline will receive a cash payment of approximately $ 109 million, and after repayment of debt and bonds, taxes and minority interest payments, is expected to have approximately $ 30-35 million.
Additional payments of $ 80 million (including about $ 12 million in interest) are expected to follow over the next 24 to 48 months. Net income before tax related to the closing transaction is expected to be between $ 35 million and $ 45 million.
After tax, net income is expected to be $ 25 million to $ 35 million and the net impact to the company’s equity is expected to be $ 15 to $ 25 million.
The deal also includes options for Resort LP to acquire Skyline’s 29% stake in December 2022, and put and call options for Skyline and Freed at the end of the fourth and fifth years following the transaction.
Skyline will host an investor call to discuss the transaction on September 30 at 9:30 a.m. (Israel time).
About Skyline, Freed and Serruya
Skyline is a Canadian company specializing in hotel real estate investments in the United States and Canada. It owns 18 income producing assets with 3,266 hotel rooms and 85,238 square feet of commercial space and development land with rights to approximately 2,315 residential units located in three main areas north of Toronto.
The company is listed on the Tel Aviv Stock Exchange (SKLN) and is a reporting issuer in Canada.
Freed Developments was founded over 25 years ago and has grown into one of the largest private developers operating in the city of Toronto.
Freed has completed over 30 projects and has expanded to include vertical operating divisions in Construction Management, Real Estate and Freed Hospitality, a portfolio of hotels, resorts, restaurants and nightlife focused on life experience.
Serruya Private Equity is a global private equity firm in a broad range of asset classes with a focus on retail and consumer packaged products.
SPE executives have developed brands such as Weight Watchers, Tropicana, Godiva Ice Cream, Cold Stone Creamery, Round Table Pizza, Great American Cookies, Marble Slab Creamery, Hot Dog on a Stick, Taco Time, Blimpie Subs and Pretzelmaker.
SPE’s platform currently includes the global brands Yogen FrÃ¼z, Pinkberry and Swensens with more than 1,300 stores in 40 countries.