Recreational vendors hope recent sale of Kicking Horse Resort signals a new round of investment BY FRANK O'BRIEN Calgary-based Resorts of the Canadian Rockies Inc. has purchased the highly succesful Kicking Horse Mountain Resort - the last major B.C ski resort built in the past 25 years - near Golden, from Dutch-based Ballast Nedam. While the purchase price was not disclosed, Western Investor believes it was close to $28 million, based on post-sale filings by Ballast Nadam in Europe. The sale could signal a long-awaited new cycle in resort investment in B.C., where there is a long list of properties on the market, some of them in trouble. Steve Paccagnan will remain as president of Kicking Horse Mountain Resort under the new ownership. It remains business as usual at Kicking Horse Mountain Resort, and all existing ski packages, passes and joint agreements will continue to be honoured, according to Paccagnan. About 400 homes have been built and sold at Kicking Horse since the development opened. Resorts of the Canadian Rockies Inc. is one of the largest private ski resort owner/operators in North America, now owning six ski resorts across Canada, including three on the B.C. side of the Rockies. In addition to the ski resorts, Resorts of the Canadian Rockies also owns and operates a number of accommodation properties, golf courses and a central reservation agency.
Kicking Horse Mountain Resort has obtained provincial approval of a 40-year master plan, which calls for a world-class destination mountain resort with an expanded controlled recreation area, 20,000 bed units, an 18-hole signature golf course, a multi-use trail system with two proposed lifts and 4,188 acres of skiable terrain. Kicking Horse is not the only place in B.C. where prospective resort buyers have been kicking tires. Calgary-based Bellstar Resorts and Hotels is apparently preparing a bid for part of Aviawest, which has gained an extension of credit protection to March 26, facing $93.7 million in debts on five B.C. resort projects. "We are looking at Parkside," said a Bellstar spokesman, referring to Aviawest's flagship Parkside Resort and Spa property in Victoria. Aviawest also owns the Pinnacle Lodge at Sun Peaks Ski Resort near Kamloops; the Water's Edge Resort in Ucluelet; and the Pacific Shores Resort and Spa at Parksville. Bellstar took control of the failed Solara Resort and Spa condominium project in Canmore last year and turned it into a top seller. According to court documents, two offers have been received for Parkside, but neither was for more than $20 million. Court-appointed monitor Grant Thornton said BC Investment Management Corp. is owed $29 million for Parkside's first mortgage. Plans also call for Pacific Shores Resort to be sold for a minimum of $10 million to cover debts owing. Resort sell off Other B.C. resorts on the market include: -- the new 108 Resort in the Cariboo Region, which covers 548 acres and includes an 18-hole golf course and other amenities, plus a lodge with 42 guest rooms. The asking price is $3.8 million through LandQuest Realty Corp.; • Tobiano Golf Resort, at Kamloops, which has been on the market since last September. Receiver Bowra Group said the developers owe the Bank of Montreal roughly $26 million; -- Manning Park Resort near Hope, B.C., is also in receivership and up for sale. Assets include nordic and downhill skiing facilities, a lodge and chalets and a pub/bistro. The resort owes $700,000 in taxes and more than $1 million to providers, according to Bowra Group; -- Saratoga Beach Golf Course on Vancouver Island just south of Campbell River, which includes an executive course and 37.4 acres of development potential, is listed for $1.49 million by DTZ Barnicke, Nanaimo; • The high-end, 18-hole Tower Ranch Golf Resort, zoned for 580 homes near Kelowna, is in receivership with the asking price chopped from $21.5 million to $14.5 million, listed with Colliers International. • Sotheby's Canada has two Tofino waterfront resorts on the market: the 40-unit Clayoquot Orca Resort near Chesterman beach, listed under a court order at $2.95 million; and the 13-unit Duffin Cove Resort, at $2.35 million, according to Sotheby's agent Mark Lester. Porpoise Bay Golf Course at Sechelt on the Sunshine Coast may also be in play soon. The District of Sechelt shut the course down last month and locked the doors after the operator fell about $190,000 behind in lease payments for the district-owned land.
from Western Investor February 2012 |
