Skyline International Development Inc., a joint venture of Mishorim Development Ltd. (TASE:MSHR) and Israel Land Development Company (TASE: ILDC) has bought a ski resort in Ontario's Horseshoe Valley for C$36 million.
The 460-acre lot has 23 ski slopes, a 35-kilometer cross-country skiing route, eight ski lifts, two golf courses, and a separate private ski club with its own facilities. There is also a 102-room hotel with a spa, restaurants, and shops. The lot is also is zoned for 817 housing units and a 9,600-square meter shopping center. On the basis of the past five years, Skyline estimates the net operating income from the project at C$3.5 million a year and net operating profit of C$4.1 million a year, giving a return on investment of 9.7%.
Skyline also has a six-year option to buy the adjacent 110-acre lot, zoned for 550 housing units, for $C11 million.
Horseshoe Valley is near a second Skyline resort at Port McNicoll; both are about an hour's drive north of Toronto. The company's Port McNicoll resort includes a ten-kilometer private beach and has building rights for 650 housing units. Skyline plans to exploit its building rights and affiliate the two resorts.
Mishorim owns 66.8% of Skyline and Israel Land Development owns 33.2%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 17, 2008
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