UNLOCK THE POWER OF THE VAULT

What’s Delaying the Sale of 14 Ski Areas Worth Hundreds of Millions?

March 1, 2016

CNL Lifestyle Properties has been trying to find buyers since March 2015

BY  | 

When CNL Lifestyle Properties announced it was putting its entire portfolio of mountain properties— including 15 ski resorts, a sightseeing tram and multiple ski area villages — up for sale, it was heralded as potentially being the largest ever ski industry transaction if they went to the same buyer. But the exit strategy that was supposed to be in place by the end of 2015 never materialized, and instead, CNL announced it would update investors some time during the first quarter of 2016 about what its plans are now.

So with the self-imposed deadline having come and gone, Curbed Ski decided to investigate what is standing between these resorts and new owners.

The first problem are the long-term operating leases in place at CNL’s resorts. CNL Lifestyle Properties is a real estate trust; it makes money off rents from the operators of its properties. So when CNL was buying resorts, it either leased them right back to the operators that sold them or found someone else to come in and run the ski area. In many cases, those leases have years, even decades, left. That presents a challenge to any resort operators that would like to buy the property: they’d either have to wait out the lease, which could be decades, or negotiate terminating the lease, an expensive proposition if even possible.
Article Located Here
Print Friendly, PDF & Email
Go Back
John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.