RED DEER, AB, Dec. 6 /CNW/ - Gamehost Income Fund (the "Fund")
Independent Trustee, James McPherson, is pleased to announce today that
Calgary West Hospitality Inc., a company owned and controlled by David and
Darcy Will, have extended an opportunity to the Fund to participate in a new
Joint Venture to purchase the new Calgary Stampede Casino currently under
construction and to enter into a long term lease on the land in which the
Casino is located with the Calgary Stampede. David and Darcy Will are current
majority owners of Deerfoot Inn & Casino Joint Venture, a separate joint
venture in which Gamehost Income Fund also owns 40%.
The Fund is pleased and excited to have an opportunity to work with a
long-standing, community oriented institution such as the Calgary Stampede.
The Calgary Stampede is a volunteer-supported, not-for-profit organization
focused on preserving and promoting western heritage and values. Beyond
hosting the Greatest Outdoor Show on Earth, Stampede venues and programs draw
more than 1.4 million people year-round to Stampede Park for trade and
consumer shows, social and agriculture events, business meetings and a wide
range of entertainment options. It has started work on its long-term vision to
transform Stampede Park into a world-class, year round gathering place for
Calgarians and their guests. The agreement is structured in such a way that
the Calgary Exhibition & Stampede will share in the success of the casino with
participating revenues that will help to ensure that this plan comes to
Currently under construction, the Calgary Stampede Casino is located at
the entrance to the Stampede Park and is only one block from the Saddledome,
home of the Calgary Flames and many other events. Calgary Stampede Casino fits
the Fund's existing model of attracting the entertainment seeker with a
variety of activities and amenities, including gaming. The facility
encompasses approximately 100,000 sq feet, with a 300 stall underground
parkade. It is a state of the art, energy efficient building which will
include three food establishments, a 400 seat live entertainment showroom,
private poker room, several beverage outlets, and a private high-limit area.
Management intends to capitalize on the intense traffic that this location
brings in order to bring success to both parties.
A committee of independent trustees of the Fund is contemplating a 20%
participating interest in this Joint Venture by the Fund. They will consider
the opportunity and will present their recommendation to the full Board of
It is anticipated that the 20% interest will require an approximate
$5 million equity contribution by the Fund. Exact costs of the entire
transaction have yet to be finalized, but are estimated at around $65 million
which includes cost of construction, working capital, pre-opening, land lease,
closing costs and various other completion related costs. Completion of the
transaction by the Fund is subject to financing as well as the approval of the
Alberta Gaming & Liquor Commission. There is no assurance that this approval
will be received.
The Calgary Stampede Casino currently occupies a portion of the Big Four
building which was originally constructed in 1960 as a multipurpose complex.
Except during the annual period of the summer fair, the casino operates as a
minor classed casino with less than 300 slot machines. The transaction does
not include operations of the Stampede Casino prior to the move to the new
building. The new Stampede Casino will operate year round as a major classed
casino with in excess of 600 slot machines. The Fund's investment in the new
Calgary Stampede Casino will constitute less than 15% of the combined total
assets of the Fund.
Further details of the project and transactions will be announced as they
This press release may contain forward-looking statements.
Forward-looking statements may contain words such as "anticipates",
"believes", "could", "expects", "indicates", "plans" or other similar
expressions that suggest future outcomes or events. Use of these statements
reflect reasonable assumptions made on the basis of management's current
beliefs with information known by management at the time of writing. Many
factors could cause actual results to differ from the results discussed in
forward-looking statements. Actual results may not be consistent with these
The Fund is an unincorporated open-ended limited purpose trust
established under the laws of the Province of Alberta. The Fund's activities
are currently confined to the Province of Alberta, Canada. Operations include
the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus
Inns & Suites and a strip mall all located in Grande Prairie. The Fund is also
a 40% joint venture partner in Deerfoot Inn & Casino Inc. in Calgary.
Additional information on the Fund is available on the company's website
at www.gamehost.ca and on SEDAR at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
On Behalf of the Board,
For further information:
For further information: Investor Relations, P (403) 346-4545, F (403)
340-0683, E email@example.com