On December 17, 2010, Nortel Networks Limited and Nortel Networks Technology Corporation (together, “Nortel”) completed the sale of the Carling Campus to Public Works and Government Services Canada (“PWGSC”) for a cash purchase price of $208 million.
On October 15, 2010, Nortel entered into a sale agreement with PWGSC for the sale of Nortel's Ottawa Carling Campus.
The campus is located on 370 acres of land and comprises 11 interconnected buildings which total more than two million square feet.
The campus is situated on land owned by NNTC and land leased to NNL by the National Capital Commission under a 99-year ground lease.
Included amongst the assets divested pursuant to the sale agreement were the NNTC land, the ground lease, the buildings, and the existing leases, including leases with buyers of Nortel's businesses in its multi-jurisdictional insolvency and restructuring proceedings.
Among other closing conditions, the sale was subject to approval by the Treasury Board of Canada and the Ontario Superior Court of Justice.
The sale was approved by the Ontario Superior Court of Justice on November 8, 2010, and the necessary federal governmental approval was obtained in December 2010.
As part of the transaction, Nortel entered into a lease with PWGSC to continue to occupy parts of the campus for varying periods of time to facilitate Nortel's continuing work on its global restructuring including work under the transition services agreements with the various buyers of Nortel's businesses.
Ogilvy Renault LLP acted as Canadian counsel to Nortel with a team that comprised Michael Lang (securities and M&A); Derrick Tay, Jennifer Stam and Adrienne Glen (insolvency); John Naccarato and Oliver Moore (real estate) and James Cade (corporate and commercial).
PWGSC was represented by a team from the Department of Justice Canada, which included Michael Siddons and Brian Kahane.