Acquire Two Debt Free Great Wolf Lodges for $114.5 million;
Great Wolf Plans to Use its Proceeds for Future Developments
|MADISON, Wis. - Oct. 4, 2005--Great Wolf Resorts, Inc. (NASDAQ:WOLF),
the nation's largest owner, operator and developer of drive-to family resorts
featuring indoor waterparks, and CNL Income Properties, Inc., a real estate
investment trust focused on leisure and lifestyle properties, today announced
they will form a joint venture to acquire two Great Wolf Resorts properties:
Great Wolf Lodge - Wisconsin Dells, Wis. and Great Wolf Lodge - Sandusky,
The $114.5 million transaction is expected to close in the fourth quarter 2005. CNL Income Properties expects to own a 70-percent equity interest in the joint venture, with Great Wolf Resorts owning the remaining 30 percent. Great Wolf Resorts will continue to operate the properties and will license the Great Wolf Lodge brand to the joint venture under 25-year agreements.
"This transaction provides benefits to both partners and helps us achieve some of our long-term goals," said John Emery, Great Wolf Resorts' chief executive officer. "With this transaction, Great Wolf Resorts is able to recycle investment capital for future growth, enhance the Great Wolf Lodge brand value with extended management and licensing contracts, and partner with a significant, long-term investor in lifestyle real estate." Emery noted the two properties carry no debt prior to their contribution to the joint venture. Great Wolf Resorts plans to use its $98.6 million in expected total proceeds from the transaction for future development projects.
"We believe the indoor waterpark resort concept is a young and growing segment of the leisure and lifestyle industry," said CNL Income Properties' Chief Operating Officer Charlie Muller. According to U.S. Realty Consultants, there were just six indoor waterpark resorts with approximately 1,400 rooms operating in the United States and Canada in 1994; by 2004, there were 60 such resorts with more than 15,000 rooms.
"Compared to non-waterpark resorts, this type of property typically reports higher occupancy and average daily rates (ADR), with as much as 50 percent of ADR coming from non-room revenue," Muller said. "These historically strong metrics make this partnership particularly attractive to our investors."
The joint venture will acquire:
About CNL Income Properties, Inc.
CNL Income Properties is a real estate investment trust that owns a portfolio of eight properties in the US and Canada in the lifestyle and recreation sectors. Headquartered in Orlando, Fla., CNL Income Properties specializes in the acquisition of golf courses, ski resorts, marinas, campgrounds, merchandise marts, destination retail and entertainment centers, attractions and parking facilities. For more information, visit www.cnl.com.
About Great Wolf Resorts, Inc.
Great Wolf Resorts, Inc.
CNL Income Properties, Inc.
|Also See:||Great Wolf Resorts, Inc. Developing a 400-suite Great Wolf Lodge in Grapevine, Texas Across from the Gaylord Texan; Will Include 80,000 sq ft Year-round Waterpark / September 2005|
|Great Wolf Resorts Joint Ventures with The Chehalis Indians to Build $80 million Indoor Waterpark Resort Mid-way between Portland and Seattle / June 2005|