Call-Net Campus

Bentall Corporation (through the acquisition of the shares of the existing title holders) and a subsidiary of Deutsche Bank of Canada (as to an undivided seventy-five per cent interest) completed on June 30, 2000, the purchase of the “Call-Net Campus” from Call-Net Enterprises Inc (Call-Net), for $85.4 million.

The Campus is an approximately 45 acre site at the south west corner of Victoria Park Avenue and Steeles Avenue in Toronto. Situated on the property are two existing office buildings, approximately 55,000 square feet and 75,000 square feet in area. Two further buildings are also under construction—one having an area of approximately 163,000 square feet and the second having an area of approximately 322,000 square feet. Under the terms of the sale, Sprint Canada Inc.

leased back one of the existing buildings on the property for ten years. Call-Net Technology Services Inc. entered into a telecommunications licensing agreement with the purchaser providing for the provision by it of telecommunications services to the property. HSBC Bank provided financing for the transaction to the purchaser.

Counsel for Call-Net was Martin Emmons of Fraser Milner Casgrain, assisted by Ken Chun on corporate matters, John Smith and Alan Frank on real estate and leasing matters respectively, and Brian Carr and Grace Pereira (tax). James Lawson, David White and Catherine MacNeill (tax) of Davies, Ward & Beck acted for Bentall Properties Limited. Diane Harris and Eric Carmona of Aird & Berlis acted for Deutsche Bank of Canada. HSBC was represented by Brock Johnston of Clark, Wilson in Vancouver, assisted by Douglas Howard. Clark, Wilson retained Mark S. Brennan and Pamela D. Horton of Donahue, Ernst & Young as Ontario agent on the matter.