TORONTO — Skyline Investments Inc. has entered into two definitive agreements of purchase and sale with Freed Corp. for the sale of a 100-per-cent interest in its Canadian resort assets and surrounding development lands at Deerhurst Resort and Horseshoe Valley Resort, as well as all of its remaining development lands at Blue Mountain Resort for an aggregate purchase price of $210 million. The purchase price represents approximately a $30-million premium to Skyline’s IFRS book value as at June 30, 2021. Freed, through a newly formed subsidiary, Resort Communities LP, will combine the assets with Muskoka Bay Resort, an asset currently owned by Freed and its partners, at an agreed value of $90 million, thereby creating a portfolio of premier drive-to Ontario resort destinations.

The transaction is expected to close on or about October 31, 2021.

“This is a milestone for Skyline that provides significant new liquidity to capitalize on our stated strategy to re-deploy our investment and operational focus from resorts and development lands into hotels,” says Skyline’s CEO, Blake Lyon.

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. “We’re excited to be a 29-per-cent partner in Resort LP along with Freed, who will now own an expanded portfolio of premier, drive-to resorts in Ontario, Canada,” says Lyon. “This transaction allows us to realize the full net asset value of our Canadian resorts, while still participating in the value creation that Freed’s proven development team can produce. Skyline’s investment partner in Blue Mountain, Serruya Private Equity, also expressed their satisfaction and support for this transaction.”

“The acquisition of these iconic resort properties will allow us to execute our strategy of modernizing the traditional resort-community market to the highest and best use through design-driven development and benefits of world-class amenities with all season access,” says Freed’s founder and CEO, Peter Freed. “In addition, the acquisition of these resorts further stimulates the growth in the hotel and resort sectors for Freed.” 


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