Investing in The Suites at Waskesiu

Investing in The Suites at Waskesiu

On occasion, the opportunity to invest in The Suites at Waskesiu presents itself when one of the existing shareholders decides to sell their interest in The Suites. The information provided herein is to give an overview of the nature of this investment to facilitate further due diligence by interested parties.

101015892 Saskatchewan Ltd. is the legal entity that owns the property that operates as The Suites at Waskesiu. The property consists of 13 one and two bedroom suites, 2 commercial retail spaces and 2 staff accommodation units that has operated as a hotel suite lodging business in Waskesiu Lake, Prince Albert National Park, since it was constructed in 2002. The hotel is a four season property that is open to the public from the beginning of May to the end of October in accordance with the current market demand, however, the building is operational and the suites are available for shareholder use 12 months of the year.

All unit blocks of shares were subscribed for by investors shortly after the property was built in 2002, so any future investment opportunities would be a repurchase of shares directly from an existing investor shareholder that wishes to sell their interest.

 

Investment Structure

  • This is not a condominium development; investors are not acquiring a real estate interest in accordance with the Condominium Act.
  • Investors own common voting shares in an active business subject to the terms of a Unanimous Shareholders Agreement (USA) that all shareholders must adhere to.
  • Investors own a block of common shares that corresponds to one of the specific suites or units and which is referred to as a Unit Block. Issued common shares can only be purchased or sold in their Unit Blocks. The shareholder of a Unit Block will have the right to exclusive use of the specific unit designated to that Unit Block in accordance with the terms and conditions as set out in the USA.

 

Benefits of Ownership – Owners benefit from both an investment and owner use perspective.

Investment Benefits

  • Four dividends have been paid since inception in 2002
    • 2007 – $100,000 – a return of 8.8% on invested capital
    • 2011 – $50,000 – a return of 4.4% on invested capital
    • 2013 – $15,750 – a return of 1.4% on invested capital
    • 2014 – $10,000 – a return of .9% on invested capital
  • These dividends represent an average annualized return of 1.2% on invested capital over 12 years of operations. All shareholders receive their pro-rata share of dividends based on their respective shareholdings.
  • Shareholders can also benefit from the potential price appreciation in their shares.
  • The business has funded itself since inception. No shareholder requests for additional capital have ever been required.

 

Owner Use Benefits

  • The shareholders have exclusive booking rights up to one year in advance of the public.
  • Shareholders are required to pay the regular nightly rate (net of taxes) for the peak season use of any unit, and a nominal $20 per night rate for off-season use (end of September long-weekend to beginning of May long-weekend) of their specific unit.
  • The above shareholder use charges can be deducted from any dividends paid.
  • All operating and capital maintenance costs are paid by the corporation.
  • The building, property and hotel business are professionally managed on behalf of the shareholders.

 

Comparison to Cabin Ownership

Cabin Ownership

  • The investment in a portable cabin ranges from $300,000 – $400,000+ at present for a cabin that is between 600 – 800 sq. ft. in size depending on the year built.
  • This equates to a market price of $450 – $500 per sq. ft.
  • Annual operating costs for land tax, insurance, water, sewer, garbage, utilities and general maintenance are approximately $3,000 – $4,000 per season. This does not cover any significant capital maintenance such as painting, roof or deck replacement.
  • Cabin use is restricted to 7 months of the year (April – October).

 

Ownership in The Suites at Waskesiu

  • The investment in a one bedroom suite (500 sq. ft.) is approximately $150,000, and in a two bedroom suite (800 sq. ft.) is approximately $240,000 (based on most recent actual sales transactions).
  • This equates to a market price of $300 per sq. ft.
  • All operating (including land tax, insurance, water, sewer, garbage, utilities and general maintenance) and significant capital maintenance costs are paid by the corporation. This saving offsets shareholder use charges that may be incurred for use of the suites.
  • The suites are available for use by shareholders 12 months of the year.

 

Contact Information

If you have further questions about investing in The Suites at Waskesiu, please contact:
Andrew or Vanna Hickson
Phone – (306) 663-4620
E-mail – info@thesuitesatwaskesiu.com