Chemtrade Logistics Income Fund, Toronto, announced plans on April 19 to actively pursue the sale of land at its North Vancouver, B.C., site through a sale-leaseback structure. The portion of the company’s North Vancouver operating facility that Chemtrade is offering for sale includes approximately 40 acres (16 hectares) of industrial zoned and rail served land.
The remaining portion of the site is currently leased from the Vancouver Fraser Port Authority. Chemtrade plans to continue to operate its North Vancouver facility following the completion of the proposed sale-leaseback arrangement.
“We are excited about the financial flexibility that this opportunity could create for Chemtrade,” said President and CEO Scott Rook. “The anticipated proceeds of the transaction could provide significant liquidity for investments in organic growth while also helping to reduce debt.”
Chemtrade has launched a formal process to evaluate options for this transaction and cannot guarantee that any transaction will take place, nor provide guidance on the interest in or likelihood of any sale. Chemtrade said it will not issue any further updates until material terms of an agreement are reached or the process is terminated.