The ink was barely dry on the $60-million sale of two Horseshoe Valley timeshare resorts to a Toronto hotel developer when crews showed up to repair and paint the buildings.
“The options are unlimited,” said Kenny Gibson, president of Sunray Group of Hotels, the new owner, adding the buildings’ future as timeshares has come to an end, however.
“We just think there’s a lot of value in Carriage that maybe some other folks didn’t see," he added.
The properties are located in Oro-Medonte Township, north of Barrie.
The sale of Carriage Ridge with 78 units within three buildings on eight acres, and Carriage Hills with 172 units in eight buildings on 20 acres closed on Monday. Recently released court documents indicate Sunray paid $41.25 million for Carriage Hills and $18.75 million for Carriage Ridge.
Sunray says it plans to rent out the units over the course of the summer for at least five days at a time to meet current cottage country demands starting in mid-July. It’s likely that they’ll then be converted into condominium units.
Meanwhile, thousands of timeshare owners are anxiously waiting to see how much of that $60 million they’ll each end up seeing. They’re not expecting much after all the costs related to the liquidation process are deducted and many are relieved that they won't have to shell out any more money.
“We kind of think if we get a grand or two we’d be thrilled,” said Bruce Fleming, who is among the 11,400 individual members who own a total of 17,408 “intervals” in the two properties. “The fact that it’s closed, that’s huge.”
Fleming, who is from Markham, paid about $20,000 for his one-week yearly timeshare ownership in 2004. At that time, maintenance and other fees worked out to about $500 annually. By 2018, they had risen to nearly $2,000.
He figured at the time that it would be a good investment. But like many other timeshare owners, particularly at the Carriage Hills and Ridge properties, it turned into a disappointment for which they feared they would forever be responsible.
And while Sunray continues to weigh all of its long-term options, Gibson said adding to the local housing market by converting all or some of the units into condominiums makes sense at the moment.
“Because there’s two separate parcels there… it depends upon where the appetite for condo sales are or what the appetite is for rentals,” he said. “But it’s unlikely we’ll do any hotels up there.”
Although its primary business is hotels, Toronto-based Sunray also works in residential and retirement homes.
Gibson says the Horseshoe units, which are 1,400 square feet, are generally in great shape on the inside, but require some maintenance. Given its proximity to many outdoor adventures, including skiing and golfing, and with the Vettä Spa soon to open nearby, Gibson says the property is attractive and can appeal to many.
“People didn’t want to see it continue to deteriorate. That’s why we moved in a construction crew literally the day after we closed to do the exteriors,” he said. “We’re just excited to be up there.”
Sunray also owns Hockley Valley Resort, Bayview Wildwood in addition to properties in Orillia, including the Champlain Waterfront Hotel and the Best Western.
Further details in the liquidation process, how the $60 million will be disbursed, including costs for BDO Canada and what will be left for the individual owners are expected to be addressed at the next court hearing Aug. 18.
