Investor Group Puts Faith in Magic

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Publish Date

03/20/2006

SAM Magazine-Londonderry, Vt., Mar. 20, 2006-An investment group led by a Connecticut lawyer is set to purchase Magic Mountain ski area here for about $3 million, according to the current owners. A report in the Brattleboro (Vt.) Reformer termed the deal "imminent." The sale would give Magic its fourth owner in the last 10 years.

Magic general manager Gary Aichholz said that the new owners hope to invest more than $3 million to triple the area's perennially limited snowmaking capacity, upgrade the lift system and cut bike trails for summer use. Aichholz also said that Magic's agreement with Glebe Mountain Wind Energy to construct a windpower turbine on the mountain remains intact. \

Comments

vermontskier

I whole-hardedly agree with H's assesment of Magic.
Great Terrian, Great Potential.
Yeah, Ascutney was bought on a shoestring, re invigorated
on a shoestring...and does just, ok..
But Real Estate, and the overall value of everything has
skyrocketed!
I wish the new owner/operator the best of luck with
re-inventing Magic. It certainly has wide appeal for
all types of snow sport enthuiasts!!
There are ways to improve the mountain with grading,
snowmaking, purchasing slightly used mountain equipment,
including lifts..Make it Happen Magic!
Good Luck, and I will be visiting my home in brattleboro
and skiing the NEW magic next season!

Investor Group puts Faith in Magic

Wait a minute guys- while you are busy dumping on the old Magic , you forget about one thing-terrain! Magic has the best steeps south of Outer Limits and north of Jaws of Death. Let the others keep their cruisers; with a little snowmaking help, Magic presents a complete package that should be marketable to a wide audience. And the market price? Come on , we are talking about a house on Okemo. This is a property with potential.

Local Resident

One of the extras to consider is the value of the property for development as a wind farm, with the associated lease payments. The Glebe Mountain wind project (now on a temporary hold) was poised to lease the top of the mountain, and rights to bury transmission lines under the ski trails. That's a long term revenue stream that adds significant value.

Also consider that there is a distressed motel on the access road that is currently being used to house workers for nearby Stratton Mountain, but that could be available for a song, and you have the beginning of a reasonable purchase. Add a potential working agreement with Stratton, and the addition of bike trails, and the idea doesn't seem far fetched. \

anonymous

Ascutney sold for $1 million in 1993, and since then the hotel, lifts and snowmaking have been upgraded. Notwithstanding the quality of snowmaking and customer service, on an asset value, it's probably worth between 5-7 million. Sugarbush sold for $8 million when ASC had to divest itself of assets to paydown debt, or interest. It had an asset value well over 30million. But, if you could find a mountain for a ski area, and you wanted to replicate the assets at Ascutney, hotel, lifts, and snowmaking infrastructure, it would probably cost 30 million. Magic is nothing like Ascutney, lacks a hotel, lacks significant snowmaking, the lifts are very old and lacks a major market. Magic is more like Plattekill in the Catskills, and in fact in my humble opinion is quite a bit better than Magic. At least at Plattekill they are upgrading their snowmaking annually, put in a new lift, and is truly a gem, with it's great proximity to the NYC market. Then there's Mad River Glen, ugh.

Mr.

It's unbelieveable that Magic could actually sell for 3 million with poor snow making, worse customer service and a very limited customer base. If Magic is "worth" 3 million, then what is another, similarly situated, mountain such as Ascutney worth, where the customer service and numbers are poor, the snowmaking is inadequate and the management can't hold on to staff? Surely, it can't be worth more than 3-4 million per this sale??

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