Trizec Canada Inc. completed, on December 31, 2003, the transfer of its leasehold interest in the operation of CN Tower back to its landlord, Canada Lands Company CLC Ltd. (CLC), for $51.75 million.
With the closing of this transaction, Trizec Canada has completed the sale of its non-US assets, repositioning its investment portfolio to focus on office properties concentrated in its core markets across the US. As a result of the transaction, CLC reassumes the operation and management of the CN Tower, which it ground leased to TrizecHahn in 1997. CLC will pursue future expansion and complimentary uses at the base of the CN Tower.
In connection with the acquisition of CN Tower, a $47 million bond offering was completed by CLC with the Manufacturers Life Insurance Co. as the sole bondholder and with BNY Trust Company of Canada as trustee.
CLC was represented by Fraser Milner Casgrain LLP, with a team led by Paul Ginou, and included Chris Turney, Maggie Brady, Jillian Shortt, Karen Ray, Andrew Salem, Tyler Langdon, Andrea Centa, Andrew Jeanrie and Abbas Ali Khan; and assisted by Daniel Black (employment) and Lorraine Allard (pension) of McCarthy Tétrault LLP. Trizec was represented by Goodmans LLP, with a team led by Stephen Belgue (real estate), and included Monica Mraz (real estate), John Alton (intellectual property) and Cyndee Todgham-Cherniak (commodity tax). The trustee and bondholder were represented by Osler, Hoskin & Harcourt LLP, with a team led by George Valentini, and included Janet Lee and Alexis Gosselin.