The former Qimonda plant in eastern Henrico County has a prospective buyer.
According to bankruptcy court documents, Richmond Semiconductor, LLC is making a stalking horse bid to buy the shuttered facility for $12 million. The plant sits on 210 acres, and the buildings total 1.3 million square feet.
Richmond Semiconductor is an entity of Overland Park, Kan.-based Quality Group of Companies. Quality Group owns and manages a number of data centers across the country and also has a real estate investment division. CEO Chad Williams did not return phone calls seeking comment.
The purchase price of $12 million is far below the recent assessed value of $34.4 million. In 2008, Henrico assessed the property at $155.5 million. The facility was constructed in the mid-1990s, with Henrico investing about $40 million in infrastructure improvements.
The property will go to auction if Qimonda does not receive any more qualified bids by March 10.
Gary McLaren, executive director for the Henrico Economic Development Authority, said his office has been involved along the way, meeting with Quality Group and other potential bidders.
“My understanding of their business is that they do data center projects and other secure facilities for government contracts,” McLaren said.
McLaren said the loss of Qimonda was a painful blow to the county.
“When they closed their doors, Henrico lost its largest private employer, taxpayer and utility customer. They provide 2,500 jobs making an average salary of $70,000. When you take it out of the economy, it’s going to have an impact,” McLaren said.
Having a potential buyer is an important first step to rebounding from the loss of Qimonda, he said.
“Getting it into the hands of an entity that owns it and can deal with it is a plus for us,” said McLaren, “but it’s not a turnaround until we have capital investment, jobs and a going entity in there.”
Other Qimonda property is also being bid on. Texas Instruments is seeking to buy an addition $20.7 million worth of equipment. The electronics giant bought $172.5 million worth of equipment last year. Another company, Global Alliance Tech Ltd., is seeking to buy additional machinery for $7.8 million.
Al Harris covers commercial real estate for BizSense. Please send news tips to [email protected].
The former Qimonda plant in eastern Henrico County has a prospective buyer.
According to bankruptcy court documents, Richmond Semiconductor, LLC is making a stalking horse bid to buy the shuttered facility for $12 million. The plant sits on 210 acres, and the buildings total 1.3 million square feet.
Richmond Semiconductor is an entity of Overland Park, Kan.-based Quality Group of Companies. Quality Group owns and manages a number of data centers across the country and also has a real estate investment division. CEO Chad Williams did not return phone calls seeking comment.
The purchase price of $12 million is far below the recent assessed value of $34.4 million. In 2008, Henrico assessed the property at $155.5 million. The facility was constructed in the mid-1990s, with Henrico investing about $40 million in infrastructure improvements.
The property will go to auction if Qimonda does not receive any more qualified bids by March 10.
Gary McLaren, executive director for the Henrico Economic Development Authority, said his office has been involved along the way, meeting with Quality Group and other potential bidders.
“My understanding of their business is that they do data center projects and other secure facilities for government contracts,” McLaren said.
McLaren said the loss of Qimonda was a painful blow to the county.
“When they closed their doors, Henrico lost its largest private employer, taxpayer and utility customer. They provide 2,500 jobs making an average salary of $70,000. When you take it out of the economy, it’s going to have an impact,” McLaren said.
Having a potential buyer is an important first step to rebounding from the loss of Qimonda, he said.
“Getting it into the hands of an entity that owns it and can deal with it is a plus for us,” said McLaren, “but it’s not a turnaround until we have capital investment, jobs and a going entity in there.”
Other Qimonda property is also being bid on. Texas Instruments is seeking to buy an addition $20.7 million worth of equipment. The electronics giant bought $172.5 million worth of equipment last year. Another company, Global Alliance Tech Ltd., is seeking to buy additional machinery for $7.8 million.
Al Harris covers commercial real estate for BizSense. Please send news tips to [email protected].