TORONTO – Nortel announced this morning that Rogers Communications will purchase Nortel’s one million square foot office and manufacturing facility in Brampton, Ontario.
The move was not unexpected, as reported earlier.
Under the terms of the agreement, which is subject to due diligence and other terms and conditions, Rogers will acquire the facility, including fixtures and certain personal property located at the facility, and the 63 acres of land the facility is located on for a purchase price of approximately $100 million.
Rogers will take possession January 4th and has not said exactly what it will put in the building.
"This agreement is a win for both companies," said Bill Owens, vice chairman and outgoing CEO of Nortel. "This is another proof point that we continue to execute on our strategy of cost leverage through business simplification. A key part of this strategy has been to ensure that our real estate requirements are sized to the needs of current business realities in order to maximize our return on assets, bring our teams together, and minimize operating expense. We welcome Rogers Communications to Brampton as they acquire one of the most impressive corporate facilities in Canada."
"We’re excited to return to Brampton, the city where our cable operations began in 1967," said Ted Rogers, president and CEO of RCI. "Rogers is looking forward to moving into this facility and continuing our focus on innovation."
Nortel is planning to relocate to two offices in the Toronto region, a sales studio and a larger corporate centre.
"Nortel will continue to have a significant presence in the Toronto-area in order to remain close to customers, be in close proximity of the financial capital of the country and to leverage the large talent pool in the area," said Owens.
However, Nortel’s largest Canadian presence will now be in Ottawa.
