A deal has been reached for the sale of a resort on a North Vancouver landmark.
A potential buyer has reached an agreement with Grouse Mountain Resorts and the transaction, valued at about $200-million, is expected to close over the next few days.
In an interview Thursday with CKNW’s Simi Sara, The Globe and Mail’s Steven Chase said the investor is based in Shanghai, and is with the China Minsheng Investment Group.
LISTEN: Simi Sara talks to the Globe’s Steven Chase
READ MORE: Grouse Mountain goes up for sale
A UBC business professor says it is interesting how many foreign companies are looking into buying B.C. mountain resorts.
“Presumably they’re getting really good offers. They’re sort of getting offers they feel they can’t refuse. So that would suggest the foreign investors are in some sense overpaying.”
LISTEN: Keith Head of the UBC Sauder School of Business reacts to the sale of Grouse Mountain
Keith Head says the ski companies are fully aware of how much the resorts are worth.
“Somebody offers you twice that, or significantly more than that, you’re going to sell. And I think these Canadian ski companies can do the same thing. So I presume this is a rational decision on their part. Somebody is offering them pretty fair change for this.”
Last year both Whistler Blackcomb and Cypress Mountain were sold to U.S.-based companies.