January 27, 2017
Sprague Operating Resources LLC, which leased the petroleum terminal and Wilkesbarre Pier in East Providence RI, will soon become owner of the asset. Sprague entered into a definitive agreement with owner Capital Properties Inc. to acquire the asset at 100 Dexter Rd. for $23 million. Sprague has leased the terminal since 2014.
Capital Properties Chairman Robert Elder indicated that the changing market required conversion of the terminal to gasoline products “which would involve significant capital investment and substantial additional risk.” He added that the decision was to divest rather than convert.
The closing is expected to occur by late February. Capital Properties will use the proceeds to redeem its 5% dividend notes, due Dec. 22, 2022.
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