(June 8, 2023) - Laurentian University has established an agreement on a Term Sheet for the sale of real estate worth up to $53.5M. The Term Sheet will help Laurentian University implement its Plan of Arrangement as part of the Companies' Creditors Arrangement Act (CCAA) process.
This Term Sheet outlines a proposed structure for the transaction which allows the province of Ontario to purchase seven University parcels of land, allowing both parties to explore the potential transaction. After due diligence, including consultations with Indigenous communities, specific assets will be confirmed for sale. The net proceeds of the sale will be used to pay the University’s creditors as set out in the CCAA Plan of Arrangement.
“The University has been focused on exploring the transfer of certain real estate with minimal impact to the operations of the University and this Term Sheet will do just that. This is an important milestone in the University’s Exit Loan Financing Agreement. I expect that the community of Greater Sudbury, who passionately expressed the importance of the trail system and green space, will be satisfied with what is outlined in the transaction,” said Dr. Sheila Embleton, Interim President & Vice-Chancellor of Laurentian University.
The due diligence process will serve to confirm that public trails (including the Trans Canada Trail System and the Rainbow Route Sudbury trail network) are properly identified. The University will retain ownership of all other lands and will seek to strengthen partnerships with the community for the ongoing use and enjoyment of Laurentian’s natural spaces. The University seeks to ensure continued public access to the trail networks and green space.
The total land identified in the Term Sheet covers 68.75 acres, which represents approximately 9% of the University’s total 750+ acres. There are also five buildings identified in the Term Sheet, which would be fully or partially leased back to Laurentian or NOSM University:
- East Residence
- Vale Living with Lakes Centre and Watershed Building
- Northern Ontario School of Medicine
- Health Sciences Building
- Security and Maintenance Building
With this non-binding Term Sheet, the University is now in a position to explore the sale of these assets and work together with the province of Ontario to negotiate a purchase and sale agreement, by no later than November 28, 2025.