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Intrawest to Scale Back Its Interest in Resort Properties

August 13, 2004|From Associated Press

Intrawest Corp. said Thursday that it would sell a majority interest in its commercial properties at nine resorts -- including Mammoth Mountain and Squaw Valley in California -- to a real estate investment trust in a transaction valued at $160 million.

The agreement calls for CNL Properties Inc. of Orlando, Fla., to acquire an 80% interest in the resort operator's commercial properties. Intrawest will continue as property and leasing manager and retain a 20% stake. The deal is expected to close by December.

Intrawest would receive about $135 million in net proceeds, said Daniel O. Jarvis, president and chief executive of its leisure and travel group.

The transaction fits with Intrawest's long-range strategy to shift from a capital-intensive to a management-intensive structure, he said.

Intrawest already is in talks with CNL to see if it would be feasible to broaden the partnership to other parts of its business, Jarvis said, adding, "What we have here is really the prototype for the structure that we intend to use as a company going forward, not just for this business but for other parts of our business as well."

Besides the Sierra ski resorts at Mammoth and Squaw Valley, the deal would affect properties at Copper Mountain, Colo.; Whistler Blackcomb in British Columbia; Sandestin Golf and Beach Resort in Destin, Fla.; Lake Las Vegas Resort in Las Vegas; Blue Mountain in Collingwood, Canada; Snowshoe Mountain, W.Va.; and Stratton, Vt.

Shares of Vancouver, Canada-based Intrawest closed up 10 cents at $15 on the New York Stock Exchange.

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