Benzinga | Nov 1, 2021 08:33AM EDT

Alcoa Sells Former Rockdale Industrial Site For $240M

Alcoa Corporation (NYSE:AA) announced today it has completed the sale of land and industrial assets in the state of Texas in a transaction valued at $240 million.

The sale included approximately 31,000 acres in Milam and Lee Counties and was marketed as the Sandow Lakes Ranch, which includes the site of the former Rockdale aluminum smelter. The Rockdale smelter was fully curtailed in 2008 and was permanently closed in 2017.

The transaction, which was completed on Friday, October 29, 2021, predominately included highly improved pasture and agricultural property and industrial assets. The buyer is SLR Property I, LP, an affiliate of a private, Texas-based real estate investment entity.

"The successful sale of the Rockdale site demonstrates the value that we can unlock as we prepare former sites for redevelopment," said Rob Bear, Alcoa's Vice President of Transformation. "Since Rockdale's closure, we've fulfilled our commitments and attracted numerous tenants who are helping create economic development opportunities.

"We are confident that the work we performed to prepare this site for this completed transaction will bring significant benefits to our former host community and the areas surrounding Rockdale," said Bear.

The Company received $230 million in net cash proceeds and expects to record in the fourth quarter of 2021 a gain of approximately $200 million in other income. Consistent with prior transactions, Alcoa reflects gains or losses from non-core asset sales as special items.