CNL Lifestyle Properties has entered into a purchase and sale agreement for its portfolio of waterparks, amusement parks and small family entertainment centers, along with its 15 ski resorts.
In the deal, EPR Properties of Kansas City, Mo., will purchase Northstar-at-Tahoe and CNL’s entertainment properties for $456 million. Och-Ziff Real Estate (OZRE) is purchasing the 14 other ski resorts from CNL for a total of $374 million, with EPR providing $244 million of five-year secured debt financing to OZRE.
CNL has been shopping its entertainment and ski resort properties since 2015. Thanks to the long-term lease agreements between CNL and its resorts, which transfer to the new owner, no changes are expected from an operational standpoint.
“CNL Lifestyle Properties is proud to have built a unique portfolio of diversified properties, many of which are long-established and iconic of the American lifestyle, that created long-term value for shareholders,” said Stephen H. Mauldin, CEO of CNL Lifestyle Properties. “We have deep respect for the approach EPR takes to managing its properties and believe this transaction is the best fit for selling the remaining properties in our portfolio as we complete our exit strategy to provide liquidity to shareholders.”
EPR Properties president and CEO Gregory Silvers said this transaction “is the culmination of a two-year process of disciplined underwriting, due diligence and negotiations.”
In addition to Northstar, the ski resorts included in the deal are:
• Brighton Ski Resort, Utah
• Crested Butte Mountain Resort, Colo.
• Cypress Mountain, B.C., Canada
• Gatlinburg Sky Lift, Tenn.
• Jiminy Peak Mountain Resort, Mass.
• Loon Mountain Resort, N.H.
• Mount Sunapee Mountain Resort, N.H.
• Mountain High Resort, Calif.
• Okemo Mountain Resort, Vt.
• Sierra-at-Tahoe Resort, Calif.
• Stevens Pass, Wash.
• Sugarloaf Mountain Resort, Maine
• Summit-at-Snoqualmie Resort, Wash.
• Sunday River Resort, Maine
The EPR board of trustees and the board of directors of CNL have unanimously approved the purchase and sale agreement and the transaction. It is subject to customary closing conditions, including the approval of the transaction by shareholders holding at least a majority of the shares of common stock of CNL and various third-party consents and governmental permits. The sale of Northstar to EPR cannot occur without the sale of the other resorts to OZRE and vice versa. The transaction expected to close early in the second quarter of 2017.