ISG Capital announces agreement to upgrade 200,000 S.F. distribution facility

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- Proactive asset management aligns interests of landlord and tenant to reduce energy consumption and operating costs -

TORONTO, Feb. 2 /CNW/ - ISG Capital Corporation (TSX-V: SUS) ("ISG" or the "Corporation") is pleased to announce that it has executed an agreement (the "Agreement") with its tenant Hercules Tire, to restructure the lease for the Corporation's wholly-owned 200,000 square foot distribution facility in Ingersoll, Ontario, Canada (the "Facility"). Under this agreement, ISG will install new, energy efficient lighting and a computerized energy management system in the Facility which will increase illumination and heat distribution, while significantly reducing energy consumption. The Agreement also provides enhanced cash flow to ISG through a mechanism to share in the resulting energy savings.

"This agreement marks an important milestone in our plan to enhance the value of industrial real estate through proactive asset management," said David Ogden, ISG's President and CEO. "Our unique process will increase energy efficiency while significantly reducing the Facility's operating costs, resulting in savings for the tenant and increased cash flow for ISG. As such, the interests of all parties are aligned to boost the environmental performance of the building while ultimately increasing the property's value. As this methodology is scalable, ISG plans to apply this process to further acquisitions and through select partnerships."

"We are very pleased to be working with ISG on this important initiative," said Rob Keller, President of Hercules Tire Canada. "ISG has provided an opportunity for us to improve the conditions for our workers, save money and reduce the carbon footprint of our Canadian warehousing operations."

ISG has partnered with The State Group Inc., one of North America's leading multi-trade contractors, to install the energy management system in the Facility. State has been providing comprehensive electrical and mechanical services on a single source basis for over 40 years and has applied energy management strategies to over 2.4 million square feet of warehouse space in the past four years.

The Facility will serve as a showcase for Philips' new 49 Watt T5 HO lamps which maximize energy savings while enhancing lighting levels in the warehouse. Philips' lamps contain only 1.4 mg of mercury, rendering them the lowest mercury T5 lamp currently available in the industry. "At Philips, we value business associations like ISG, that are as committed to reducing energy consumption and CO(2) emissions as we are", says Ted Simpson, General Manager of Philips Lighting Canada. Philips hardware is being complemented by the work of Westburne Ruddy Electric which designed and is implementing the complete lighting solution.

The existing lighting equipment will be removed and repurposed by Green Standards Ltd. under its "Pay it Forward" program. ISG is provided with a tax receipt for transferring title of the lights to Green Standards. Green Standards will ensure the lights go to deserving and needy non-profit organizations, schools, and health clinics.

On site implementation has commenced and is expected to be completed prior to the end of the first quarter of 2010. The ISG process will lead to a significantly enhanced Energy Star baseline score for 2010 and income to ISG from the resulting energy savings is expected to begin in March of 2010.

The TSXV has neither approved nor disapproved the contents of this press release. The TSXV does not accept responsibility for the adequacy or accuracy of this press release.

SOURCE ISG Capital Corporation

For further information: For further information: David Ogden, President & Chief Executive Officer, (416) 203-7538 or (877) 877-0213; www.isgcapital.ca

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