Katerra sells factories and offices in $ 71.25 million deals

Dive brief:

• A Philadelphia-based multi-family modular construction company received court approval last week to purchase Katerra’s assets in Tracy, Calif., For $ 21.25 million, including the lease and rental improvement of their manufacturing plant and their offices. Volumetric construction companies will use the facility to fabricate windows, cabinets, countertops, trusses and paneled building elements over the next three months and plan to produce modular housing elements there next year. . according to a press release.
• Katerra also got court approval last week to sell its Spokane, Wash. Plant for $ 50 million after the company reported an undisputed initial bid for the facility, according to Bloomberg law.
• Katerra filed for bankruptcy in early June and the transactions are part of a court-supervised sale of its assets.

Dive overview:

Modular builder VBC offers architectural, logistics, manufacturing and construction services to produce multi-family homes in less time than traditional construction techniques, according to its website. Its volumetric approach allows buildings to be assembled quickly by connecting a series of large prefabricated modules.

VBC’s deal includes the 577,000 square foot Katerra plant, which opened in 2019 and can produce around 20,000 cabinets and 10,000 windows per month, according to the professional builder. The offices include 50,000 square feet of custom furnishings and furnishings, conference rooms, model show areas and office suites.

Katerra also sells its Spokane, Wash. Plant to Blue Varsity LLC, a wholly owned subsidiary of Vancouver-based Mercer International, according to a press release. This The factory is equipped with extensive automation technologies, 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 feet. Products made at this facility are used in both commercial and residential construction, according to the Mercer statement. With offices in Seattle, Mercer is one of the world’s largest producers of market pulp and a growing leader in solid wood products.

Katerra’s financial challenges resulting from the pandemic, an inability to provide bonding for projects and an inability to secure additional capital and business. The company has also made commitments to sell the architectural Rénovations and Lord Aeck Sargent businesses to private buyers, subject to court approval.

Tokyo-based Softbank had invested $ 500 million and taken a controlling stake in Katerra, but its CEO subsequently named Katerra as one of Softbank’s biggest investment failures., according to Bloomberg.