Intrawest Corporation, one of
the world’s leading destination resort and adventure-travel companies,
announced today that it has completed the first tranche of its previously
announced sale of commercial properties at several Intrawest resort
villages to a partnership in which CNL Income Properties, Inc., a real
estate investment trust, is an 80% partner and Intrawest retains a 20%
interest. These commercial properties include space occupied by a variety
of tenants including retail stores, restaurants and specialty shops in the
resort villages developed by Intrawest. Due to the size and complexity of the transaction, the partners agreed to
split the closing into three separate tranches. In this first tranche, the
partnership has acquired commercial properties at Intrawest resort
villages of Whistler Creekside at Whistler, British Columbia and the
Village at Blue Mountain in Collingwood, Ontario, having a total value of
$30.3 million. The net proceeds to Intrawest of $27.8 million will be used
to pay down debt.

The second tranche of the transaction will include five Intrawest resort
villages including the Village of Baytowne Wharf at Sandestin Golf and
Beach Resort, Florida; the Village at Mammoth Mountain, California; the
Village at Copper Mountain, Colorado; the Village at Snowshoe Mountain,
West Virginia; and the Village at Stratton, Vermont. The second tranche is
valued at approximately $80 million. In order to facilitate the scheduled
closing of the second tranche, which is expected by March 31, 2005,
Intrawest has agreed to provide bridge financing of $45 million on normal
commercial terms. It is anticipated that permanent financing will be
arranged before June 30, 2005.

The third tranche will include two of Intrawest’s newest developments:
MonteLago Village at Lake Las Vegas Resort, Nevada and the Village at
Squaw Valley, California. No date has been set for the closing of these
properties.

The completion of the second and third tranches are subject to a number of
conditions, including finalizing the financing, settling and executing
definitive documentation, completion of due diligence, and customary
closing conditions. There are no assurances that all of the closing
conditions will be satisfied or that CNL Income Properties will acquire
these properties.

Orlando-based CNL Income Properties, an affiliate of CNL Financial Group,
has been formed to invest in income-producing real estate with an emphasis
on recreation and lifestyle segments, such as golf resorts, marinas,
vacation ownership, and ski resorts and adjacent property. The Intrawest
commercial property portfolio will be CNL Income Properties’ first
acquisition.
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