Katerra sells factories and offices in stores valued at $ 71.25 million

Diving letter:

  • A Philadelphia-based modular apartment building company received court approval last week to purchase Katerra’s property in Tracy, California for $ 21.25 million, including lease and tenant improvements to its manufacturing facility and offices. Volumetric Building Companies will use the facility to manufacture windows, cabinets, countertops, trusses and paneled construction elements within the next three months and plans to produce modular housing components there next year. according to the press release.
  • Katerra also received court clearance last week to sell its Spokane, Washington, factory for $ 50 million after the company submitted an uncontested initial bid for the facility. under Bloomberg law.
  • Katerra filed for bankruptcy protection at the beginning of June and the transactions are part of a judicially regulated disposal of their assets.

Dive Insight:

The modular construction company VBC offers architecture, logistics, manufacturing and construction services to produce apartment buildings in less time than traditional construction techniques, according to its website. The volumetric approach enables buildings to be erected quickly by connecting a number of large, factory-built modules.

VBC’s contract covers Katerra’s 577,000-square-foot factory, which opened in 2019 and can produce approximately 20,000 cabinets and 10,000 windows per month, according to Professional Builder. The offices include 50,000 square feet of custom fittings and furnishings, conference rooms, model display areas and office space.

Katerra is also selling its Spokane, Washington, facility to Blue Varsity LLC, a wholly owned subsidiary of Mercer International based in Vancouver. according to the press release. That The plant is equipped with extensive automation technology, including one of the largest cross laminated timber presses in the world.

The facility is located on 54 acres with an area of ​​approximately 270,000 square meters. The products made in this factory are used in both commercial and residential construction, according to Mercer. With offices in Seattle, Mercer is one of the world’s largest manufacturers of market pulp and a growing leader in solid wood products.

Katerra’s financial challenges due to the pandemic, the inability to tie up projects and secure additional capital and business. In addition, the company has committed to the sale of the Renovations and Lord Aeck Sargent architectural divisions to private buyers, subject to court approval.

Tokyo-based Softbank had invested $ 500 million and acquired a controlling stake in Katerra, but its CEO later referred to Katerra as one of Softbank’s biggest investment mistakes, so Bloomberg.

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