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SGF invests $35million in Groupe Le Massif
SGF takes a 25% stake in an enormous tourism complex in the Charlevoix region
Montréal, June 10, 2008 – Société générale de financement du Québec (SGF) has invested $25 million in Groupe Le Massif inc., obtaining a 25% stake in the company. SGF has also made a commitment to invest another $10 million in the form of debt.
This investment represents a unique opportunity for SGF to take part in one of the most ambitious tourism projects in Québec and at the same time contribute to regional economic development, in line with its strategic orientations. The project’s proponent is Daniel Gauthier.
“We’re very pleased to be involved in this enormous tourism development project,” stated Pierre Shedleur, FCA, President and General Manager of SGF. “The concept will give local, regional and international visitors the opportunity to enjoy a unique experience in a magnificent region, all year round. In addition to enhancing the international reputation of Charlevoix, the project will also create wealth and jobs for this outstanding region,” Mr. Shedleur added.
In line with its mission, SGF is making a structuring investment that will have a measurable impact on Québec’s economic development, especially that of the Charlevoix region.
Claude Choquette, FCA, President and Chief Operating Officer of Groupe Le Massif, welcomed SGF’s support for the project. “Sharing a common long-term vision is undoubtedly the basis for any sound business relationship, and the partnership between Groupe Le Massif and SGF is no exception. The knowledge, expertise and dependability offered by the members of SGF, combined with the strength of our group, can only contribute to a unique project with many innovative features,” Mr. Choquette stated.
Daniel Gauthier, Chairman and Chief Executive Officer of Groupe Le Massif, is also very enthusiastic about the new partnership: “I’m obviously gratified by SGF’s confidence in us and very pleased to be able to discuss strategy with a group whose extensive knowledge of Québec’s economic situation will be highly relevant to our project,” Mr. Gauthier commented.
About Territoire Le Massif
Le Massif, the ski centre in Petite-Rivière-Saint-François, in the Charlevoix region, is the centrepiece of the project initiated by its owner, Daniel Gauthier. When he acquired the site in September 2002, Mr. Gauthier quickly realized that development of the resort would inevitably involve a four-season project.
With a total value of $230 million, the project involves construction of a complex that is integrated, ecological and responsible. Territoire Le Massif is a distinguished by a unique concept that features architecture geared to protection of the landscape and respect for the environment and the social milieu. The project will also offer unique and innovative entertainment, sports and cultural programs, with a complete range of activities during all four seasons.
Territoire Le Massif will consist of three main sites, spread along 20 km of shoreline, from Petite-Rivière-Saint-François to Baie-Saint-Paul:
• The Pôle de la Ferme is in Baie-Saint-Paul, in a bucolic setting, near the public, cultural and commercial activities of the city. It features a 150-room bioclimatic hotel designed by architect Pierre Thibault. In addition to providing accommodation, this versatile complex will offer a performance hall, various cultural events, facilities for meetings and conferences, a public market, cooking workshops, a spa and more. A railway shuttle operating on a regular schedule will connect the site to the Le Massif ski centre.
• The Base. On the shoreline, at the western boundary of the village of Petite-Rivière-Saint-François, the Base will become a public crossroads with the construction of a rail station at the foot of the mountain. Diversified, low-density accommodation will be available at an inn, cottages and several signature houses, such as the tidal house. The activities include guided sea kayaking amidst the nearby islands, educational tourism, treetop adventure, etc. A limited amount of accommodation will be available at a spa.
• Les Crêtes is at the peak of Le Massif, where the existing ski centre is located. Like the Base, it will offer low-density accommodation in Nordic chalets and a few signature houses, such as the wind house. Various slide sports will be available, as well as mountain biking, hiking and a 10-kilometre toboggan run offering an unequalled family experience.
In addition to the components belonging to Groupe Le Massif, the project includes a tourism train between Québec City and La Malbaie. The train will provide exclusive access to various shoreline villages as well as a unique, entertaining, high-calibre travel experience.
Economic benefits
The complex will give the region an economic and social engine that is based on sustainable development and respects the nature-culture niche.
According to the sector model of the Institut de la statistique du Québec, the project will generate the following benefits for Québec and the Charlevoix region:
Development phase
The various construction sites required for the project’s fixed assets, namely the mountain facilities, accommodation and the tourism train, will provide direct and indirect employment for almost 1,700 people and will generate almost $70 million of wages, $22 million of taxation and incidental taxation revenues for the Québec government and an overall increase in Québec’s gross domestic product of $118 million. The development phase will continue until 2013.
Operations phase
On completion in 2013, operation of the new facilities will have created more than 600 seasonal and full-time jobs. Operation of the project will also provide work for about 170 suppliers in the Québec City region. These jobs will generate more than $20 million of wages, almost $5 million a year of taxation and incidental taxation revenues for the Québec government and a permanent increase in Québec’s gross domestic product of more than $40 million.
During the operations phase, the project will also have a significant impact on the international reputation of Charlevoix. It will attract an estimated 68,000 new international tourists, who alone will inject $66 million into the region and surrounding areas.
About Groupe Le Massif inc.
The story of Le Massif began more than 25 years ago. In the early 1980s, a first hostel was built at the foot of the mountain in a paradise of powder snow. Since then, many aficionados have discovered what is still called Québec’s best-kept secret. Until 1990, skiers travelled to the peak by bus.
Thereafter, many new facilities appeared at the foot of the mountain. The first chalet was built. Le Massif replaced its buses with two ski tows, added an artificial snow-making system and gradually added trails.
In 2000-2001, the Olympic dream resurfaced. An investment of more than $28 million (including $20 million by governments) will allow the construction of an access road to the summit (via Highway 138) and the creation of the National Training Centre. New trails, snowguns and a ski tow, as well as a panoramic chalet at the peak, round out the facilities.
Daniel Gauthier acquired Le Massif in September 2002 and has upgraded the facilities over the years, with investments totalling more than $15 million. Le Massif now has highly efficient facilities with ski tows and artificial snow-making systems.
In 2005, Mr. Gauthier and his team held public consultations to present the concept behind the Territoire Le Massif master plan to the entire population of Charlevoix (governments, municipalities, residents, business people, employees, members of the tourism industry, potential partners, etc.). It received an enthusiastic welcome, and the first construction site will open in August 2008, in Baie-Saint-Paul.
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Source:
Marie-Claude Lemieux
Senior Adviser, Communications and Media Relations
Société générale de financement du Québec
Tel.: (514) 876-9368
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