For those of you who are following our investments in Kitimat closely, you'll know that we have our eyes on roughly 10 major projects that are either already under development, or are proposed. Today's news was welcomed as we learned of another step forward towards yet another confirmed investment—a major one.
As you know, we've been watching the Kitimat market since late 2012 and invested into it since early this year. As we speak my inbox is full of news related to the imminent deal for the proposed Heavy Oil (crude) refinery. David Black, Newspaper industry veteran and the man behind the deal, has indicated that potential operation could be up and running as soon as 2020.
At this time, a group of US investors have signed a memorandum of understanding, though full details have yet to be worked out. When asked how solid the deal is, David Black responded by saying: "I would say it’s a hundred per cent, because in this case the financiers are very anxious to help get refined fuels from Canada".
Black hopes to refine Alberta crude in Kitimat to avoid shipping the heavy oil by tanker along the BC coast to customers overseas — shipments he believes could “threaten” the marine environment.
What does this mean for Kitimat Real-estate? This is all great news for us. While news like this is unlikely to have any major impact to property values (or associated rents) however it is a step forward, in the direction we're banking on. Through our property acquisitions over the past 2.5 months we've definitely noticed a rise in prices and a drop in negotiating room.
Interested in finding out more about our completely hands-off investment opportunities in Kitimat? Contact us today to find out what investment opportunities are currently available.