Algoma Central sells property for $26.4M
Algoma Central Corp. is selling its commercial real estate property in St. Catharines, but Canada’s leading shipping company remains firmly anchored in the city that is home to its corporate headquarters.
The real estate properties that sold for $26.4 million are known to Algoma as Henley Corporate Park.
They consist of two office buildings, a 50 per cent interest in another office building and 0.84 hectares of vacant land available for future development on Martindale Road adjacent to the QEW highway.
“I can’t disclose the buyer because I don’t have permission from them, but it is a name you will recognize when it does come out — they are prominent in the community,” said Peter Winkley, Algoma’s vice-president of finance and CFO.
“We are retaining our head office building on Church Street.”
“The properties we sold are the corporate park. There are three office buildings there. One we owned jointly with Meridian where Meridian is the primary tenant. Then there are two other buildings leased to other folks.”
The three office buildings have about 12,690 total square metres of leasable space.
“We were happy with the level of interest in the property and the price we achieved,” Winkley said. “I think what it tells you is that people are looking at Niagara fairly positively.”
Winkley said the company’s decision to sell its real estate holdings is a result of a new strategic objective to direct capital to the renewal of the domestic dry-bulk fleet and opportunities in international shipping.
The company recently announced contracts for seven new Equinox Class domestic dry-bulk vessels as part of its on-going fleet renewal program.
About 100 people work at the corporate headquarters — which takes up two floors of the building at 63 Church St. — in downtown St. Catharines. They are staying put.
“The corporate head office isn’t going anywhere,” Winkley said with a laugh. “You will still see our logo on the building and our ships in the canal.
“We announced about 18 months ago we were exiting the real estate portfolio of the business to concentrate on marine shipping.
“Aside from our head office, we are selling off all of our real estate holdings. We are in the process of selling our properties in Sault Ste. Marie as well.
“It is really just a re-focusing of where our capital is deployed.”