Published On: Thu, Dec 27th, 2018

CorEnergy offloads Portland Terminal to Zenith Energy

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CorEnergy Infrastructure Trust has divested its Portland Terminal Facility, a rail and marine transloading terminal in Portland, Oregon, and its remaining stake in the Joliet Terminal in Illinois to Zenith Energy Terminals for $61 million.

Zenith Energy Terminals had the option to buy the terminal since February 2017 under a lease agreement with CorEnergy.

Dave Schulte – CEO and President of CorEnergy said: “The rent payments CorEnergy received on the Portland Terminal over the last five years, as well as the gain on sale from this transaction, have provided a total annual return within CorEnergy’s low to mid-teens target range for this type of asset.”

The transaction was undertaken by CorEnergy and Zenith Energy Terminals after an asset and market review.

In January 2014, CorEnergy acquired the Portland Terminal for $42 million. It invested a further $10 million for improvements in the terminal asset.

CorEnergy offloads Portland Terminal to Zenith Energy

CorEnergy offloads Portland Terminal to Zenith Energy. Image courtesy of Stuart Miles/Freedigitalphotos.net.

In December 2017, Zenith Energy Terminals became the parent company of the tenant when it bought the original tenant, a subsidiary of Arc Logistics.

CorEnergy also offloaded its remaining interests in Joliet, the owner of a multi-purpose storage facility located in Illinois. As of 30 September 2018, CorEnergy valued the interests at nearly $1.2 million.

Schulte added: “Our tenant’s operating team developed the commercial potential for the Portland Terminal, while CorEnergy fulfilled our role of funding the initial acquisition and upgrades. The relationship has proven beneficial to both parties.

“We are pleased with the transaction, to have had Zenith as a tenant, and to have played a role in its continuing terminal acquisition success.”

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