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Well, no more lease operator having to sell asset owner on planned upgrades to property.  Takes the middle man out so to speak, so hopefully they have enough coin themselves to start investing.  Not likely at the pace of BIg Sky, but hopefully some progress.  Based on Vail, Alterra and Powdr's announced plans, they need to get the ball rolling or be left in the dust.  I hope this is a positive, has to be right?

Wow that must of cost A LOT of money I didn't see a figure on this. Should be a positive seeing they are investing in something they own instead of just run.

Good for Boyne. Hopefully now that the operator and owner will be one entity again, Boyne can invest in its mountains with relative ease considering that they have the money to do so (and based on their recent investments at Big Sky, I think they do). Boyne has not actually owned all of its areas since 2005. Now they will be the sole owner/operator of the mountain, which in my opinion is the way a ski mountain should be. 

Great news!

Sounds a bit too familiar.....

Super. So the Kircher's went back to the pawn shop and bought their mountains back.  So what was the vig they paid over the life of this arrangement.  All you finance types, could you please explain.

What was reasonable for the time, but times change.  Don’t know total but CNL’s operating objective for the REIT was to return 8% to investors with a low to moderate level of risk, so start from there. For the time(s) the lifestyle REIT was considered a “conservative” financial arrangement for investor and borrower alike. There’s a good amount of back press on CNL’s troubles with the REIT.

Ideally Boyne would have been able to terminate their lease to own deals by doing what they just did, but CNL couldn’t afford to sell the performing properties and be left with the dogs - so CNL held on until they could move the entire portfolio of properties in the REIT.  OZ obviously acquired the properties at a value that allowed them to break up the portfolio and sell a subset of properties at a price that made financial sense for OZ and Boyne.  

Loon was originally a lease back deal with George Gillette (Waterville  Valley and Vail fame).  Picking up Loon as a wholly owned east-coast “cash cow” is gravy. Snoqualmie in WA is the west coast version.  

Boyne should be in a much better competitive situation now. We shall see.

WatervilleMESkier said:

Super. So the Kircher's went back to the pawn shop and bought their mountains back.  So what was the vig they paid over the life of this arrangement.  All you finance types, could you please explain.

Hopefully this means they can/will invest
We dont need much imo
A reliable Barker, maybe a 6 seater (we dont need bubbles or heated seats).

I doubt capital investment will help much with the tap selection at barker pub tho. Altho maybe a real face lift, restroom and food service could be a capital investment.

I ask the group:
What else could we reasonable expect for needed upgrades?
New white cap lodge? Doubt it, dont care. If they do it add condos and make money selling RE at the same time. But that lodge works fine for what it is.
Expansion west of jordan? Doubt it, would be cool but not "needed" imo
Seperate racers lodge at barker?
A real village at SR? I bet this one is on their radar. I dont care.

I would simply:

1) New lift at Barker

2) All other $$ into more snowmaking and grooming (when needed)

3) Tempest lift upgrade 

4) More glade work

A new Barker lodge, better parking lot, White Cap lodge, etc are all "nice to have" vs "need to have".  I do not think we need any additional terrain. 


Wheelie said:

Hopefully this means they can/will invest
We dont need much imo
A reliable Barker, maybe a 6 seater (we dont need bubbles or heated seats).

I doubt capital investment will help much with the tap selection at barker pub tho. Altho maybe a real face lift, restroom and food service could be a capital investment.

I ask the group:
What else could we reasonable expect for needed upgrades?
New white cap lodge? Doubt it, dont care. If they do it add condos and make money selling RE at the same time. But that lodge works fine for what it is.
Expansion west of jordan? Doubt it, would be cool but not "needed" imo
Seperate racers lodge at barker?
A real village at SR? I bet this one is on their radar. I dont care.
I like your list
Tempest upgrade would be nice but not "required"

I bet the Kirchers are happy! Bodes well for SR and the other mountains if the purchase price and financing are at market.

I will say it again.

Sounds a bit too familiar......

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