A For Sale sign has been hung on about 180 Saskatchewan Wheat Pool elevators.
The grain company announced last week it had entered into an agreement with Re/Max Crown Real Estate Ltd. to sell facilities that no longer fit the company’s plans.
Will Hill, senior vice-president of the pool’s grain group, said the tendering process used in the past was adequate when a smaller number of elevators was sold.
But with 180 to sell, Hill said the pool decided to call in the experts.
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He said the real estate company has the people and the knowledge to work with municipalities and rail companies and deal with financing issues. With so many parties and factors involved, the deals may become quite complex.
“Those things are outside our expertise,” Hill said.
The Regina Re/Max office will look after the properties in the southern half of the province and the North Battleford office will service the north.
The elevators will be listed at commercial value. Hill said that could range from $5,000 to $500,000, depending on the age, physical condition, location and potential use of the facility.
Buyers will be able to operate the elevators as they see fit. Most will likely be used for farm storage, but they could also be used for special crops processing, loading producer cars, museums and heritage sites.
Previously, the pool tendered facilities for sale based on a minimum bid. The minimum was calculated on the elevator’s location, condition and the equipment it contained.
The bid was also calculated as if the buyer was going to use the facility for storage.
Buyers who wanted to operate the elevators as commercial enterprises had to enter into marketing agreements with the pool, and consign their grain shipments to a pool terminal.
That won’t happen any more, but the price will be higher for facilities that could compete with the pool.
“In any facility that we sell without any commercial restrictions, they will be priced to reflect the business opportunities in the area,” Hill said.
He said this is a better alternative than destroying good buildings.
In some locations, “the actual physical condition is actually quite good,” he said. “But the business case for keeping a facility there might not be that strong.”
The pool has already sold about 40 facilities for farm storage, Hill said. Sales are pending on a similar number and 78 have been torn down.
Hill said the elevators are on a 60-day listing schedule with four Re/Max agents who deal with rural properties. He expects some will take longer than 60 days to sell.
Other elevators, especially those in poor condition, may not sell at all and will likely be demolished.
“We’re hoping to have the whole process done by the end of the calendar year,” Hill said.
Information on the properties will be posted May 4 on the pool’s website at www.swp.com and the Re/Max site at www.remax-crownreginask.com.
