REGINA — Land owned by Darrel Monette and his companies in Saskatchewan and Manitoba is now listed for sale through selected real estate brokers.
Prospective buyers shouldn’t expect fire sale prices, because although the sales are being held under a court process the companies were not bankrupt, said Monette Farms’ legal counsel David Kemp.
You can follow all our coverage of Monette Farms here.
The sales and investment process, or SISP, was approved by an Alberta court earlier in June and began June 29. The properties in British Columbia were to be listed by the week of July 6.
Monette will retain his Alberta land, and any other land that doesn’t sell, as long as his debt to a syndicate of lenders is satisfied, said Kemp.
Monette owes the syndicate led by Bank of Nova Scotia about $920 million.
“After we sell down some properties, reduce our debt load, we’re fully intending to operate a large-scale farm on the other side of this,” said Kemp. “So everything is being listed, but not everything will be sold.”
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The sales process closes Nov. 30.
Monette owns about 284,000 acres in Canada and the United States, and leases 172,000 acres, making the company one of the largest privately-owned farms in North America. His interests include grain, livestock and horticulture.
Since entering the Companies’ Creditors Arrangement Act process in April, Monette obtained $90 million in debtor-in-possession financing to seed this spring and has sold some cattle to pay a livestock loan through Farm Credit Canada.
The court-appointed monitor, FTI Consulting, is conducting the sale.
The sale teaser suggests the appraised value of Monette’s land is $1.04 billion. The majority, or 177,000 acres worth about $725 million, is listed as restricted land in Saskatchewan and Manitoba. That’s because of provincial laws that govern how much non-residents can own.
The remainder is in B.C., Alberta, Montana, Colorado and Arizona.
Potential buyers will have to sign non-disclosure agreements.
The brokers in Saskatchewan and Manitoba are Hammond Realty, Sutton-Harrison Realty and Royal LePage Martin-Liberty.
The American brokers are Premier Land Company in Montana, Clark & Associates Land Brokers in Colorado and Southwest Land Associates in Arizona.
A press release issued by Monette Farms said the properties are coming to market when demand for quality land is robust.
“The SISP is designed to provide qualified buyers with an orderly, transparent opportunity to acquire premier agricultural assets that are rarely available at this scale,” it said. “The objective of the SISP is to achieve outcomes that reflect the true quality and underlying value of these assets for the benefit of all stakeholders.”