By Dani Grigg
The Phoenix development company SunCor is expecting to sell a majority of its assets, including Idaho planned community Avimor, the company announced last week.
The sale includes $400 million of housing projects, golf courses and some commercial projects, mostly in Arizona. SunCor is a subsidiary of Phoenix-based Pinnacle West Capital Corp.
“It’s all designed to make us smaller, more lean and really a Phoenix, Arizona-based company,” Pinnacle spokesman Alan Bunnell said.
He said the company anticipates that sales will all be completed by the end of 2009.
“Until such time that those assets are sold, it’s going to be business as usual,” he said. “And I anticipate that whoever buys them will continue to build upon the foundation we’ve laid.”
SunCor has assets of $475 million and debts of $175 million. After the restructuring, SunCor will be left with about $75 million in assets. It will use proceeds from the sales to pay off its debt.
Bunnell said SunCor will work the Avimor land owner in the transfer of development plans. Avimor is the company’s only Idaho venture.
Avimor, a 684-home planned community in the foothills northwest of Boise, was approved by Ada County in 2006. So far, about 20 homes have been built on site, in addition to infrastructure and amenities. Build-out is planned to take 30 years.
One of problems with this, is that SunCor sold Avimor to Idaho with their name and reputation to complete projects. Unfortunately, you can see the writing on the wall for SunCor, since no one is going to buy in this economic climate. It sounds like the beginning of the end for SunCor who, like so many others, reached too far to quickly.
By: Dave Kangas on April 7, 2009
at 12:13 am