Largest industrial sale in municipality’s history brings long-term local liquefaction of green energy by HTEC

Vancouver, British Columbia – Avison Young and CBRE announce the largest industrial investment transaction completed in North Vancouver – a transaction that will provide HTEC access to significant quantities of clean by-product hydrogen fuel for the Metro Vancouver region, as well as the Western United States and beyond.

The sale, between ERCO Worldwide and HTEC, of 100 Forester Street in North Vancouver, was for an undisclosed amount and closed on April 30, 2024. The property comprises 21.37 acres, which will be the future site of HTEC’s North Vancouver Clean Liquid Hydrogen Facility, as part of the H2 Gateway program. ERCO Worldwide will lease back a portion of the property on a long-term basis for its manufacturing operations, which includes generating by-product hydrogen gas through electrolysis.

Avison Young’s Ryan Kerr, Ian Whitchelo, Amir Pourmina, and Terry Thies were the exclusive advisors and agents for the purchaser, HTEC. CBRE’s Chris MacCauley and Travis Blanleil were the exclusive advisors and agents for the vendor, ERCO Worldwide.

Throughout the process, the advisory team had one key goal in mind: to provide HTEC with an asset that would facilitate clean energy promotion in Canada, attracting federal and institutional investor interest in ESG-focused real estate opportunities. The sale encompassed a complex, multi-year process involving transaction and capital structuring, regulatory strategizing, as well as zoning and land use approvals from the District of North Vancouver.

This transaction reinforces British Columbia’s position as one of North America’s tightest industrial markets, with high rental rate growth and historically low availability. In H2 2023, per Avison Young, the BC industrial market remains fundamentally strong and industrial investment in the province peaked above $2 billion for the year.

QUOTES:

“Transactions of this scale are rare throughout Canada, requiring comprehensive involvement from real estate capital markets advisors – particularly during such a swiftly changing economic landscape. Avison Young was proud to support HTEC throughout this historic, milestone transaction.” – Ryan Kerr, Principal, Avison Young

“Transactions of this caliber and magnitude are a rarity in today’s market. It was a pleasure representing the vendor, ERCO Worldwide, in the second largest industrial land transaction in terms of deal value in Metro Vancouver. This complex endeavor was managed using CBRE’s comprehensive process, and months of consultation with various stakeholders were essential to making this significant transaction a reality.” – Chris MacCauley, Executive Vice President, CBRE Limited

“This transaction marks a significant milestone in our mission to deliver clean hydrogen transportation fuel to BC and the broader Pacific Northwest region. We extend our sincere gratitude to Avison Young, CBRE, and the advisory teams for their unwavering support in making this project a reality.” – Colin Armstrong, President and CEO of HTEC

"ERCO Worldwide is thrilled to join forces with HTEC in the H2 Gateway Initiative. This strategic partnership improves our facility’s overall energy efficiency and demonstrates our commitment to sustainability. This transaction enables the realization of a vision developed over a decade ago. It demonstrates how traditional industry can support the transition to net zero." – John Engelen, Vice President of Corporate Development of ERCO