CNL Lifestyle Properties, one of the largest golf course owners in the world, is reportedly getting out of the business.
According to a California news report, the Orlando, Fla.-based real estate investment trust (REIT) is selling its 48-course portfolio to Delaware-based CF Arcis X. The deal, reached June 10, included a $10 million deposit, Santa Clarita radio station KHTS reported.
CNL is a REIT that owns a portfolio of 149 properties in the United States and Canada, specializing in the acquisition of ski and mountain lifestyle, attractions, golf, marinas, senior housing and additional lifestyle properties.
All official inquiries were referred to an SEC filing, because the deal has not been finalized—but both sides have agreed to terms, said Gary Rosmarin, vice president of asset management for CNL Financial Group, KHTS reported..
“The projected net cash to the company from the sale of the golf portfolio is anticipated to be approximately $208 million after repayment of approximately $89.9 million of debt, including associated prepayment penalties,” according to an 8-K filing with the Securities and Exchange Commission.
An 8-k is a form used to give company investors notification of pertinent shareholder information, KHTS reported.
“(CNL) anticipates that the net proceeds of the sale will be used to retire indebtedness, invest in new assets or enhance existing assets,” the form stated.
In March 2014, the company engaged Jefferies LLC, a global investment banking and advisory firm, to assist the company in actively evaluating strategic alternatives to provide liquidity to the stockholders.
“The company believes that the sale is consistent with the strategic alternatives currently under consideration,” according to the filing.
Following are a few of the CNL golf courses being sold: Cowboys Golf Club, Grapevine, Tex; Hunt Valley Golf Club, Phoenix, Md.; Painted Desert Golf Club, Las Vegas, Nev.; Kokopelli Golf Club, Gilbert, Ariz.; and Palmetto Hall Plantation Club, Hilton Head, S.C.
An official with the holding company CF Arcis X LLC, which was formed in a May 13 filing, was unable to be reached.
CNL Financial Group is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $28 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit www.cnl.com.
