Harbour site ripe for development
Waterfront parcel expected to attract big price
“The timing could not be better” for the sale of a huge parcel of industrial land in the Shearwater area, said Bob Mussett, executive vice-president at commercial real estate firm CBRE, which is handling the sale.
Across the harbour from Halifax, the site is owned by Valero Energy, which operated the Ultramar refinery there.
Valero has declared surplus the 216-hectare site, which includes a 15-hectare water lot that is a pre-confederation lot, meaning the buyer will own that portion of the bottom of the harbour.
“It gives you options; you could put another pier out, you could infill part of it,” Mussett said.
“There’s a procedure to go through to do it. You need an environmental plan and to deal with (the Navigable Waters Act), but it really gives you lots of options and it’s direct access to the harbour, so that’s pretty interesting.”
Mussett said the property includes wetlands that will have to be preserved and calls the land unique, due to its scope and its water, rail and highway access.
Despite the size, he said, it could go to a single user.
“It may be an owner that services a variety of users in an industrial warehousing logistics setting, and we’re now hearing from potential energy users, as far as green energy,” he said.
“With what’s gone on in the logistics world and what’s now going on in the supply side of energy, given the Russian war in Ukraine, it’s just made everybody look for options with security around supply lines.”
Mussett said the tank farm that was the bulk of the refinery is already gone, and associated inground infrastructure has been removed or is in the process of removal.
“There are some other buildings there now, smaller buildings that are being readied for demolition. There’s probably another year of remedial work to be sure the site is completely shut down, and that’s all part of the closure plan that’s been submitted to and accepted by (Nova Scotia’s Environment Department),” he said.
“The site will be turned over once the closure plan is completed, and the new owner will undertake whatever development they’re planning.”
Although there has already been considerable interest in the property, Mussett said, he expects it will be several months before there is an actual call for bids. He wouldn’t speculate as to what the price might be.
“You can look at what land is priced for in Burnside and draw some conclusions. We’ve gone out unpriced; we’re letting the market evaluate what they think,” he said.
“You know, I just look at the water lot, we’re seeing industrial land trading in some cases for a million dollars an acre. What’s the water lot worth? You look around the harbour, in Halifax the land is either controlled by the federal government through the port, or the military, or Develop Nova Scotia. I don’t know another site that would offer this type of access.”