Real estate firm to buy ex-GM Ohio plant

Fri Aug 17, 2012 12:55am IST

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(Reuters) - The Racer Trust, which holds plants that General Motors Co (GM.N) got rid of during bankruptcy, said it would sell the automaker's Mansfield-Ontario stamping plant in Ohio to Brownfield Communities Development Co for an undisclosed amount.

The trust said Brownfield Communities had identified two tenants that were interested in occupying much of the 2.5 million-square-foot building.

With the purchase of the building, Brownfield Communities has committed to add more than 1,100 new jobs in Ohio, Racer Trust said in a statement.

The trust, officially known as the Revitalizing Auto Communities Environmental Response Trust, was created in March 2011 with the mandate to sell the plants GM left behind following its bankruptcy and $50 billion taxpayer bailout.

The trust is tasked not only with simply selling its 44 million square feet of industrial space, but creating jobs and increasing tax revenue in communities where the plants often were a central part of life.

The Mansfield-Ontario Stamping Plant is the 17th former GM property sold since the trust was established. Total sales proceeds so far have exceeded $24 million, it said.

Brownfield Communities is a joint venture of real estate firms Adler Group Inc and Hilco Real Estate.

(Reporting by Bijoy Koyitty in Bangalore; Editing by Saumyadeb Chakrabarty)

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