CNL Income Properties, Inc., a real estate investment trust (REIT) focused primarily on recreation and lifestyle properties, announced today it has entered into a partnership to purchase an 80 percent ownership interest in commercial properties at nine resort villages owned by Intrawest Corporation and its affiliates.

The $160 million acquisition, subject to completion of customary closing conditions, includes premier retail and commercial space located in the Intrawest villages. Intrawest will retain 20 percent ownership of these facilities and continue in its role as property and leasing manager

While tenant groups vary based on location, the commercial component of these villages typically includes restaurants, retail and office space. The villages, most of which are part of popular North American ski resorts, include:

* Whistler Creekside at Whistler Blackcomb, British Columbia, Canada
* Village of Baytowne Wharf at Sandestin Golf and Beach Resort, Destin, Florida
* Village at Squaw Valley USA, Lake Tahoe, California
* Village at Mammoth Mountain, Mammoth Lakes, California
* Village at Copper Mountain, Copper, Colorado
* MonteLago Village at Lake Las Vegas Resort, Las Vegas, Nevada
* Village at Blue Mountain, Ontario, Canada
* Village at Snowshoe Mountain, Snowshoe, West Virginia
* Village at Stratton, Stratton, Vermont

“This partnership is ideal for the lifestyle investment objectives of this REIT,” said CNL Income Properties President Byron Carlock. “The properties are in excellent locations and have marked opportunity for growth, and Intrawest is a recognized leader in its field.”

Intrawest CEO Joe Houssian echoed Carlock’s sentiments. “To position the company for continued success, Intrawest is transitioning from a capital- intensive to a more management-intensive structure as further exemplified by this pending transaction,” he said. “We consider CNL Income Properties to be a key partner for the future.”

CNL Income Properties invests 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 portfolio will be CNL Income Properties’ first acquisition.

“We’re building a portfolio of premier properties that capitalizes on the changing real estate utilization patterns of baby boomers, echo boomers and genXers who, we believe, will be golfing, traveling and shopping like never before,” said Carlock. “To have had the opportunity to forge this partnership with Intrawest right out of the gate is exciting.”

The Intrawest commercial portfolio includes Whistler Creekside, one of two retail villages at Whistler Blackcomb, a 7,000-acre ski resort 75 miles north of Vancouver. According to Intrawest Corporation, Whistler Blackcomb saw 2.1 million ski visits in the 2002/2003 season (November 02 through April 03) and will be a host venue for the 2010 Winter Olympic Games. The year-round resort municipality is home to three championship golf courses and was named Canada’s “number one golf destination” by Golf Course Ranking Magazine.

The commercial portfolio also includes Village of Baytowne Wharf, a 56,000-square-foot retail village located in Sandestin Golf and Beach Resort. The 2,400-acre resort, which offers a variety of water sports, golf, tennis and lodging, is located midway between Panama City and Pensacola on Florida’s northwest peninsula, an area that draws approximately 4.5 million visitors annually (source: Emerald Coast Convention & Visitors Bureau).

The transaction is expected to close before the end of the year. There are no assurances that all of the closing conditions will be satisfied or that CNL Income Properties will acquire these facilities.
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