Those who have been following the aftermath of Laurentian University’s insolvency finally have some information about what assets LU plans to sell to the province of Ontario as it prepares to pay out its creditors.
Laurentian University has established an agreement on a Term Sheet for the sale of real estate worth up to $53.5 million, said a press release issued June 8.
The Term Sheet will help Laurentian University implement its Plan of Arrangement as part of the Companies' Creditors Arrangement Act (CCAA) process.
This Term Sheet outlines a proposed structure for the transaction which allows the province of Ontario to purchase seven university parcels of land, allowing both parties to explore the potential transaction. The school has not identified those seven parcels of land.
After due diligence, including consultations with Indigenous communities, specific assets will be confirmed for sale.
“The university has been focused on exploring the transfer of certain real estate with minimal impact to the operations of the university and this Term Sheet will do just that,” said Laurentian’s interim president, Sheila Embleton.
“This is an important milestone in the university’s Exit Loan Financing Agreement. I expect that the community of Greater Sudbury, who passionately expressed the importance of the trail system and green space, will be satisfied with what is outlined in the transaction.”
The due diligence process will serve to confirm that public trails (including the Trans Canada Trail System and the Rainbow Routes Sudbury trail network) are properly identified.
The university will retain ownership of all other lands and will seek to strengthen partnerships with the community for the ongoing use and enjoyment of Laurentian’s natural spaces.
The university seeks to ensure continued public access to the trail networks and green space, said a press release.
The total land identified in the Term Sheet covers 68.75 acres, which represents approximately nine per cent of the university’s total 750+ acres.
There are also five buildings identified in the Term Sheet, which would be fully or partially leased back to Laurentian or NOSM University:
- east residence
- Vale Living with Lakes Centre and watershed building
- Northern Ontario School of Medicine
- health sciences building
- security and maintenance building
With this non-binding Term Sheet, the university is now in a position to explore the sale of these assets and work together with the province of Ontario to negotiate a purchase and sale agreement, by no later than Nov. 28, 2025.
— Sudbury.com
