Good day from Crested Butte,
Details of the big Triple Peaks (owners of Crested Butte Mountain Resort, Mt. Sunapee and Okemo) buyout are becoming clear. It appears the deal will impact day to day operations at our ski resort minimally. The real impact? Triple Peaks and CBMR now have a very serious capital owner/partner to bolster operations and expansion. The deal is structured as a "sale-leaseback".
It is my understanding that CNL, a real estate investment trust (REIT), purchased the each ski resort’s operating assets but not the CBMR’s developable land assets. CNL has entered into a long-term agreement with Triple Peaks and CBMR to lease the operations "back" from CNL and continue operating CBMR and the other two ski resorts just as they have done up to this point. Legally, real estate investment trusts are not allowed to participate in their investment’s operations, although they have authority to approve the major construction projects they finance. Basically, CBMR and Triple Peaks are making a lease payment to their new owners versus paying interest to some investment banks."
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