Interfor Corp T.IFP

Interfor to Sell Acorn Specialty Sawmill in British Columbia

[Betteryear2]

BURNABY, British Columbia, April 12, 2022 (GLOBE NEWSWIRE) -- INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced today that it has reached an agreement to sell its Acorn specialty sawmill located near Vancouver, British Columbia (“B.C.”) (the “Mill”) to an affiliate of San Industries Ltd. (the “San Group”).
 

Interfor to Sell Acorn Specialty Sawmill in British Columbia

 

 

[cfliesser]

I wonder why they are selling it?

[JohnnyTSX]

My guess is the same reason many larger players are divesting in British Columbia and investing in plants elsewhere... Tough regulatory environment and unfriendly resource sector politics.

[dosperros]

Yes, it's not much guesswork either.  The BC Coast has been the od man out for years now -- it's a complex, high cost environment.  It has no scale, plus is the concentration of the issues you mentioned.  They are not leaving the BC Interior as Adams Lake is world class (e.g. has a capacity 3x this Acorn outfit's nameplate but 7x its actual output) and Castlegar is

[SleepingGiant64]

Like others said, they're definitely trying to cut the portfolio weight of BC. On the price, I would hate to give that up at a lumber multiple. Looking a Google Maps, that is a PRIME piece of real estate. 30 acres of prime industrial with direct river and highway access right in Vancouver has to be worth more than $20-$40m.

[dosperros]

I'd assumed it was owned land too, but I noticed in the presser it's actually leased land. I had a scan for the coastal timber.  I could only find TFL 45 at an AAC of 140,000 M3.  Still this would be able to transact for maybe $150/M3 roughly so when/if they sell that they could pick up about what you thought for the value of the YVR real estate.  Not terrible.  I don&