Real Facilities Inc.

Real Facilities Inc.

January 31, 2007 13:53 ET

Real Facilities Inc.: The Implications of the Proposed Sale of $1.5 Billion Worth of Federal Government Office Buldings are Enormous

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) -

WHAT?

Ottawa has announced that it is selling $1.5 billion worth of office real estate nationwide. This far reaching plan will see many federal buildings sold to the private sector with the government as tenant in buildings it used to own. The deals, expected to hit the market later this year, will be among the largest real estate offerings of Canadian property, affecting more than 230,000 employees who could soon be working in more energy efficient buildings. Energy efficient, or "green" buildings, as they are known, are becoming increasingly significant. As a result of large cash influxes in recent years, interest in Canadian corporate real estate has increased dramatically, driving up prices of prime Canadian properties.

WHY?

Because of the huge costs associated with maintaining Canada's largest office buildings owned by the Federal Government, it has long been concerned with ways of financing these expenses. Needless to say, it has been difficult for the government to raise the necessary funds when other issues like social services and education have risen to the top of its agenda. Now, the government sees selling its portfolio as a way not only to make building maintenance someone else's concern, but more important, as a means to saving tax payers significant money.


WHO?

Stan Krawitz, President of Real Facilities (www.realfacilities.com) and one of Toronto's leading authorities on commercial real estate, is able to comment on:

- Who will benefit;

- The real estate capital markets;

- Is this good or bad for the Canadian tax payer;

- How these deals should be structured to achieve the greatest benefit for Canadians;

- Who are the appropriate buyers;

- The likely effects on rental rates for corporate real estate in Canada;

- The implications of these transactions on corporate real estate in Canada's most important commercial centres;

- What is an energy efficient building and what are its environmental impacts; and

- The benefits in using the process known as a "sale-leaseback" likely to be used by the federal government in selling core holdings of its real estate portfolio.

Contact Information

  • For further information, or to schedule an interview with
    Stan Krawitz, please contact:
    Sacke & Associates Inc.
    John Sacke
    (416) 493-5723 ext 201
    Email: johns@sackepr.com