Federal government unloads nine buildings

OTTAWA – Nine federal buildings have been sold to Vancouver-based Larco Investments for $1.64 billion and will be leased back for 25 years. The deal is part of a broader plan by the federal government to sell more than three dozen office properties.

“We sought independent advice on this particular transaction from international financial expert Deutsche Bank,” said Michael Fortier, minister of public works and government services Canada in a statement. “The analysis concluded that this is a fair deal for Canadian taxpayers, particularly since the transaction was concluded when markets were very favourable.”

There were two buildings sold in each of Vancouver, Ottawa and Montreal, and one sold in each of Edmonton, Calgary and Toronto. Larco cannot sell the buildings for at least 10 years and is responsible for needed repairs and maintenance. The federal buildings provide different services including passports, Employment Insurance and the Canada Pension Plan.

For more information www.larcohospitality.com

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