(TSX : ALC)
ST. CATHARINES, ON, Nov. 18, 2015 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) is announcing today that it has begun a process that will result in the sale of the Company's real estate holdings.
The decision to sell the Company's commercial, retail, office, and other buildings, comprising over 1 million square feet, is a result of a review of the strategic objectives of the Company and a decision to focus the Company's capital on domestic and international shipping opportunities. These opportunities include renewal of the domestic dry-bulk fleet, as well as the recently announced increase in Algoma's interest in the international self-unloader Pool.
Marketing of the properties is expected to begin during 2016 and steps are now being taken to prepare the properties for sale.
For the year to date, the Properties segment of the Company contributed revenues of $23.9 million and net earnings of $2.1 million. The portfolio of properties had a net book value of $79.2 million as at September 30, 2015.
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including 18 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk vessels operating in international markets. Algoma provides ship management services for other ship owners and owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
SOURCE Algoma Central Corporation
For further information: Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897