GOLF & RESORT GROUP Premier Leisure Properties - CBRE

G O LF & R E SORT G ROU P
   Premier Leisure Properties
YEAR IN REVIEW 2017

Looking back on our predictions for 2017 in our last Year in Review, they proved to be spot on.
Although it took several months for investors to buy into an expanded economy due to the Trump
Presidency, the stock market reached all-time highs and investor confidence began to surge. There
appears to be plenty of “gas in the tank” for the current recovery and according to the “Emerging
Trends in Real Estate” annual report by PWC released at the ULI Fall Conference in October,
we are in a long cycle of growth with no timetable for a recession to begin. Further, its felt that
the recession, when it does come, will have a “soft landing” as opposed to the hard landings of
previous economic cycles that were caused by the S & L debacle, the dot-com bubble burst and the
sub-prime landing fiasco. The recovery has been slow paced and moderate and although money
is cheap, it’s not recklessly flowing as in previous booms. Nonetheless, due to the current length of
the recovery some real estate investors are still taking a defensive position which will lead to buying
opportunities for those more bullish on the future.

The ski industry did undergo dramatic changes in 2017 thanks to purchases by KSL/Aspen Skiing
Company of Intrawest, Mammoth Mountain and Deer Valley for over $2 billion. Their business
model will be to emulate the success of Vail Associates and specifically the Epic Pass which de-risks
the volatile ski business due to weather. 2017 also saw the largest ever golf portfolio transaction
when Apollo purchased ClubCorp for a record $2.2 billion.

We are even more bullish on 2018 than 2017 as the market dynamics continue to improve and we
will be bringing exciting properties to market in the coming months. Cheers!

Jeff Woolson
Managing Director
CBRE Golf & Resort Properties

GOLF COURSE SALES 2003 - 2017
 3.5                               Gross Revenue Multiples
 3.0

 2.5

 2.0

 1.5

 1.0

 0.5

 0.0
       2003   2004   2005   2006    2007   2008   2009   2010   2011   2012   2013   2014   2015   2016   2017

                                                                               Source: CBRE Research

We have sold more than 125 golf properties over the last 25 years and
began using the Gross Revenue Multiple (GRM) as a valuation metric
in our sales analysis during the most recent recession, since so many
golf courses were not generating positive cash flow. As it relates to our
transactions, the average GRM peaked in pre-crash 2007 at 2.86 and has
averaged 1.63 for the last 10 years, most recently dropping to an average
of 1.37 in 2017. The decline in GRMs for our transactions roughly mirrors
the data reported by the Society of Golf Appraisers, who show a declining
national average in recent years and a 1.48 GRM most recently.

        GOLF                RESORT                SKI           MARINA                DEVELOPABLE LAND

KINGSMILL RESORT
Williamsburg, Virginia

SOLD February 2017
Resort / Conference Center / Private Country Club
(54 Holes) / Developable Land

GROUSE MOUNTAIN
           Vancouver, Canada

              SOLD July 2017
 Ski Resort / Developable Land

CARTON HOUSE
Dublin, Ireland

SOLD November 2017
Golf Resort

EASTLAKE COUNTRY CLUB
         Chula Vista, California

         SOLD December 2017
         Daily Fee Golf Course

LAS VEGAS COUNTRY CLUB
Las Vegas, Nevada

SOLD December 2017
Private Country Club

WESTKIN PORTFOLIO
Coachella Valley, California

SOLD November 2017
Leasehold Portfolio
(Golf / Hotel / Residential)

SOUTHSHORE GOLF CLUB
           Henderson, Nevada

         SOLD December 2017
             Private Golf Club

W estkin
   new
 south
 ocean

2018 PREVI EW

New South Ocean, Bahamas

                                  Granby Ranch, Colorado

  Diablo Grande, California

  DuPont Country Club, Delaware   Steamboat Springs Land, Colorado

Anco Lands Portfolio, Bahamas

  Reunion Resort, Florida

                                     Heritage Golf Portfolio

Aetna Springs , California              CostaBaja, Mexico

JEFF WOOLSON                                MORGAN ABBOTT                                                                                                                        GOLF & RESORT GROUP
Managing Director                           Senior Underwriter                                                                                                                  5780 Fleet Street, Suite 100
+1 760 438 8530                             +1 760 438 8536                                                                                                                               Carlsbad, CA 92008
jeff.woolson@cbre.com                       morgan.abbott@cbre.com                                                                                                                           +1 760 438 8500
                                                                                                                                                                       w w w. c b r e . c o m /g o l f a n d r e s o r t

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© 2018 CBRE Group, Inc. We obtained this information from sources we believe to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation
about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include
projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should
conduct your own investigation of the property and transaction. This offering memorandum is subject to the terms outlined in the confidentiality agreement. Reproduction of this document and its contents is strictly
prohibited without the expressed written consent of CBRE.