Skyline Investments has announced the pending sale of its development lands around Blue Mountain, Deerhurst Resort in Huntsville, and Horseshoe Valley Resort to a private developer from Toronto.
The deal includes 100 per cent of Skyline’s interest in Deerhurst and Horseshoe Valley.
In a news release, Skyline announced the $210 million deal will close on or about Oct. 31.
According to the announcement, Skyline is selling the lands to Freed Corp, a Toronto-based developer with a hospitality division specializing in resort, restaurants, nightlife and ‘lifestyle-experience’ hotels.
Following the sale, Freed will combine the Skyline properties with Muskoka Bay Resort to create a new subsidiary called Resort Communities LP, which will add a drive-to Ontario resort destination portfolio to Freed’s existing ventures.
As part of the deal, Skyline will receive $109 million cash plus $80 million in payments over two-to-four years. The two developers have also agreed on a 29 per cent equity stake for Skyline in the new Resort Communities LP subsidiary of Freed.
“This is a milestone for Skyline,” stated CEO Blake Lyon in the news release.
He noted it will provide significant “liquidity” for Skyline to redeploy its focus from resorts and development lands to hotels.
“This transaction represents one of the largest resort sales in Canada in the last 15 years, according to Beechwood Real Estate Advisors, who advised Skyline on the transaction,” stated Lyon in the release. “Skyline’s investment partner in Blue Mountain, Serruya Private Equity, also expressed their satisfaction and support for this transaction.”
Freed CEO Peter Freed said in the release that the acquisition is part of the company’s strategy to “modernize the traditional resort community.”
According to its website, Skyline manages 100 per cent of all the retail properties in the Blue Mountain Village. It previously owned 50 per cent of the retail space in the Village, but sold ownership in 2019.
That’s in addition to three development sites within the village centre, which would be the subject of the pending sale to Freed. The sale announcement specified it is for the remaining development lands, but did not include Skyline’s interest in Blue Mountain Village.
Skyline acquired Horseshoe Valley Resort in 2007. Deerhurst is also run by Skyline. The sale to Freed includes 100 per cent interest in both assets.