Great Gulf Group announces the sale of 42 new cottage chalets, construction of new CPGA golf course and 20,000-square foot spa at Muskoka Sands

Plans Call for Total Proposed Development Over Seven Years of Almost $500 Million

Press Release: Great Gulf Group of Companies
April 26, 2001
GRAVENHURST, ON -- Elly and Norman Reisman, principals of the Great Gulf Group of Companies, yesterday announced plans for the expansion of the 1,200-acre Muskoka Sands Resort on the shores of Lake Muskoka, an historic vacation property north of Gravenhurst that the company owns and manages. Included in the initial phase of the expansion are: 42 new Cottage Chalets to be offered for sale to the public on May 26/01 at the Resort; a 7,200-yard CPGA-certified 18-hole golf course, to be ready for play by summer 2002; and a 20,000-square foot spa to open in late 2003.
The next chapter in Muskoka Sands' history will bring new services, new facilities and new ownership opportunities, all offered in the same tradition of wilderness luxury that has been the Resort's hallmark for 75 years. Over the next seven years, the total value of all the proposed new development will approach $500 million, including: a staged build-out of additional Cottage Chalets, for which zoning approval has been granted; new and expanded conference facilities; expanded waterfront capacity; and a variety of new resort amenities.

"Muskoka's natural beauty has for centuries been a beacon for Canadians longing to escape the chaos of urban life," said Garth Drabinsky, creative marketing consultant to the Muskoka Sands project. "The new development at Muskoka Sands will offer an unprecedented opportunity for Canadians to make a part of Muskoka their own."

"The addition of the new golf course and spa at Muskoka Sands will place the resort in a new echelon of North American getaway destinations," said Elly Reisman.

New Ownership Opportunities

A series of 42 Cottage Chalets will initially be made available for sale, 18 of which have already been built, with the balance to be completed in the next 12 months.

Purchasers have a choice of luxuriously furnished three- or four-bedroom Cottage Chalets measuring 1,600 to 1,900 square feet, plus a Muskoka Room measuring 130 square feet. Leading Toronto interior designer Brian Gluckstein has designed the interiors.

Cottage Chalets can be acquired under the resort's unique Part Ownership program, which offers buyers the opportunity to purchase either one-quarter or one-fifth ownership in a unit. One-fifth ownership starts at $110,000 and one- quarter ownership is available from $137,500. Those who prefer extended access to a vacation home throughout the year have the option of purchasing a multiple of one-quarter and one-fifth ownership plans.

Quarter owners can use their unit for 13 weeks each year, including their choice of two guaranteed weeks in the "prime time" period between July 1 and August 31, and a total of eleven weeks, at one full week per stay, rotated over the rest of the year.

One-fifth owners will enjoy 10 weeks of usage per year, at one-week intervals, including two guaranteed weeks in the prime time summer period.

Part Ownership has built-in flexibility. Owners can trade their weeks with other owners or for a stay at other resorts listed with Resort Clubs International.

Whenever a Cottage Chalet is not in use by the Owner, it may be registered with the Muskoka Sands' Rental Pool Program. Profits will be distributed among owners who choose to participate in the pool. The Resort's higher than average occupancy rate creates a steady demand for rental units, even at premium rates.

All owners will have access to the range of facilities and amenities of Muskoka Sands, including the new CPGA championship golf course, the new 20,000- square foot spa and the Resort's fine restaurants.

Construction is slated for other areas as well. The waterfront will see a new harbour breakwall, expanded docking facilities and a new fleet of boats, available for use by Full and Part Owners.

Championship CPGA Golf Course to be Named 'Taboo'

Immediate expansion plans to the Sands include a new 7,200-yard championship-calibre18-hole golf course, to be named Taboo and certified by the CPGA. Ron Garl, a leading U.S. course designer whose work includes the renowned Wooden Sticks Golf Club in Uxbridge, is the course designer. Taboo will be ready to play in summer 2002.

"Our first goal with Taboo was to design, in conjunction with the Great Gulf Group, a world-class championship course that would lie softly on the land. We wanted a course that would not intrude on the landscape but blend seamlessly with the natural beauty that surrounds it," said Garl, who has designed the world's most challenging and memorable golf courses for over 30 years.

As evidence of his mastery of course design, the PGA Tour has chosen Garl- designed courses, including the Palm Beach Polo & Country Club and the TPC Prestancia in Sarasota, for eight prestigious Tour events. Golf Digest has named his Golden Ocala course one of America's "75 Best Public Golf Courses" and GOLF magazine chose two of his courses for "Best Resorts for 1992" -- Marriott's Grand Hotel in Pt. Clear, Alabama and Grenelefe Resort in Haines City, Florida.

In 2000, he captured Score's Best New Course honour once again with Wooden Sticks Golf Club, a magnificent course in Uxbridge, Ontario, making him two-for-two in major awards for his courses in Canada.

A Holistic Approach to Beauty, Health & Fitness at Spa to be Named
'Sweetgrass'

The perfect complement to Muskoka Sands' unrivalled outdoor facilities will be a world-class spa and treatment centre, to be named Sweetgrass, designed by Mike McCaffrey of MCM International Spa Strategists Planners, Inc., designer of both the Banff Springs Hotel Spa and the new Boca Raton Resort and Club Spa in Florida.

When it is complete in 2003, guests will have access to the most unique spa experience in North America - one which offers a blend of the best in fitness, wellness and treatment spas from around the world in an unparalleled wilderness destination.

Water is central to the Sweetgrass philosophy, incorporated in water- related treatments and a design that blends seamlessly with the dramatic lakefront vista for which Muskoka Sands is famous.

McCaffrey has created an exclusive treatment that reflects the rich and varied heritage of the Muskoka region to officially welcome guests to Sweetgrass in signature style. The Muskoka Sweat Lodge is a therapy administered in a specialized chamber where healing mud is applied and heat dried on the body, as soothing music fills the background. Afterward, tiny water jets gently 'rain' the mud away.

Other innovative skin care and body treatments include Facial Aromatherapy, Aromatherapy Salt Glow, Detoxifying Body Wrap, Seaweed Wrap, Algotherapy and Fango Therapy.

Work on the spa will also involve a major renovation of the resort's existing lobby and the Winewood Dining Room, with new interiors designed by the leading-edge UK firm, United Designers, whose comprehensive design service graces the exclusive Parrot Cay resort in the Turks & Caicos Islands, the five- star Four Seasons Hotel at Canary Wharf in London, the Clarence Hotel in the Temple Bar district of Dublin and The Metropolitan Hotel overlooking Hyde Park in London.

Cottage Chalets will be sold by priority reservation, beginning Friday, April 27/01. More information about purchasing is available from Baker Real Estate at (416) 920-3336 or call toll free 1-866-MUSKOKA or visit the website www.my-muskoka.com.

About the Great Gulf Group

The Great Gulf Group of Companies has grown from a respected regional homebuilder to an international, fully integrated group of building and development companies since it was founded in 1975. Under the Great Gulf Homes banner in Canada and Ashton Woods Homes in the United States, the company has built thousands of homes in dozens of communities and become renowned for design innovation, superb craftsmanship and outstanding customer service. The company has been awarded an Excellent rating by the Ontario New Home Warranty Program and has been the recipient of numerous industry awards in the United States including Best Builder in Houston. First Gulf Group, the company's commercial and industrial arm is a full-service, vertically integrated development company engaged in conception, construction and management of retail, office and industrial space in Canada and major cities in the U.S.

----------------------------------------------------------

For further information

Rhoda Eisenstadt/Beth Merrick, The Communications Group (416) 696-9900, reisenstadt@tcgpr.com, bmerrick@tcgpr.com