Guangzhou Evergrande Buys Historic Resort in Canada

While many of China’s biggest property developers have been acquiring assets in global gateways such as Los Angeles or New York, Xu Jiayin, the chairman of Evergrande Real Estate Group has headed further north by purchasing a historic railway hotel in rural Quebec.

According to reports in the Canadian press, Evergrande has now acquired Chateau Montebello, a 26,305 hectare (65,000 acre) wilderness resort along the banks of the Ottawa River between Ottawa and Montreal. Financial terms of the deal were not disclosed.

The acquisition is the first in North America for the developer controlled by China’s fifteenth-richest man and seems to be part of a diversification drive that has seen the company invest in everything from sports clubs to bottled water as returns on its traditional home building business continue to decline.

A Chinese Property Prince Buys the Dream of Railroad Barons

By purchasing the sprawling resort complex from Oxford Properties, the real estate arm of the Ontario Municipal Employees pension fund, Evergrande’s Xu, who also goes by his Cantonese name, Hui Ka-yan seems to be shopping for the dreams of magnates of an era gone by.

Originally founded as a private club for members that included local elite such as the presidents of the Canadian Pacific Railway, the National Bank of Canada, the Bank of Montreal and the Royal Bank of Canada, the resort went on to host world leaders from Harry Truman and Margaret Thatcher to Bing Crosby and Princess Grace of Monaco.

In order to complete the complex in time for the summer season of 1930, 3500 laborers were put to work cutting and fitting together the 10,000 logs needed to build the 211 room structure.

In its current configuration, the Chateau includes an indoor and outdoor pool, an 18-hole golf course and 26 kilometres of cross-country ski trails, and once hosted a G7 summit.

Now managed by the Fairmont Hotel Group, The Chateau will continue to fly the Fairmont banner after the sale, according to a statement from the Canadian hotel management firm.

A Different Path to Diversification

Many of North America’s historic resorts, which were built around rail travel, have struggled to compete now that tourists make their getaways by private car or airplane. In the last two years, Quebec investment fund Ivanhoe Cambridge has sold off resorts similar to Chateau Montebello in Ottawa, and Victoria, British Columbia, while it still has two more of these fading landmarks on the market.

In light of this trend it could be challenging for Evergrande makes this initial foray into the America’s pay off, but the developer has not shied away from flamboyant deals in the past.

Just last month Xu was making headlines in Australia after arriving there in a private Airbus to look at potential property acquisitions. While no major projects were agreed on during the trip down under, Xu did pick up a mansion in Sydney for $33.4 million.

Also in the last year, Evergrande has launched its own bottled water brand, set up new businesses in the grain and agricultural processing sector, and revealed a joint venture hospital business affiliated with Harvard University.

The company is also widely known for its ownership of Guangzhou Evergrande football club, which it now co-owns with Alibaba magnate Jack Ma.

While we wait to find out what Xu might buy next, please enjoy these photos of Chateau Montebello. Looks like a good place to spend Christmas.