Ontario Securing $260 Million From Sale of LCBO Head Office Lands
Net Revenue Gains to Fund Key Infrastructure Projects Across Province
Ontario is securing $260 million, subject to closing adjustments, from the sale of the LCBO head office lands, which is composed of over 11 acres of real estate in downtown Toronto near the waterfront, to Menkes Developments Ltd., on behalf of a partnership comprised of Menkes, Greystone Managed Investments and Triovest Realty Advisors.
The government is committed to dedicating the net proceeds generated from the sale to the Trillium Trust, which helps fund transit, transportation and other key infrastructure projects across the province.
Selling the LCBO lands is a key part of the government's plan to unlock the value of its real estate assets in order to help fund the largest investment in public infrastructure in the province's history - about $160 billion over 12 years. The planned investments are estimated to support 110,000 jobs, on average, each year across the province.
The successful purchaser was selected through an open and competitive procurement process run by Infrastructure Ontario to deliver the best value for Ontarians. Plans for the development of the lands will be unveiled in the coming weeks and will include new LCBO head office facilities and a flagship retail store. The office tower housing the new LCBO offices and store will be a green space, built to a minimum LEED Gold standard and will strive for LEED Platinum certification. This aligns with the government's commitment to move towards a low-carbon economy.
Building priority infrastructure is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
- In September 2014, the government announced it was seeking a buyer for the LCBO head office lands to reinvest funds in public infrastructure.
- Ontario has a firm and binding agreement with Menkes Developments Ltd., on behalf of a partnership comprised of Menkes, Greystone Managed Investments and Triovest Realty Advisors for the LCBO head office lands, including the LCBO head office at 55 Lake Shore Blvd. East, the LCBO warehouse at 43 Freeland St. and adjoining land, and the LCBO store at 2 Cooper St. adjacent to Queen’s Quay East. The sale is expected to close in the near term.
- The net revenue gain to be dedicated to the Trillium Trust from the sale of the LCBO lands is expected to exceed the 2012 Budget estimate of a net profit of $200 million.
- Ontario’s $5.7 billion asset optimization initiative to fund infrastructure includes the sale of the LCBO lands and other real estate assets, broadening the ownership of Hydro One and previous sales of General Motors shares. The Province is proceeding to unlock the value of the Seaton lands, Lakeview lands and the Ontario Power Generation head office properties.
“The gain from the sale of the LCBO head office lands exceeds our projections and is another positive step forward in our plan to invest in infrastructure projects that grow the economy and create jobs for Ontarians. A more efficient head office and an enhanced retail store planned for the LCBO will also generate increasing returns to ultimately fund key services Ontarians rely on.”
“Our government is committed to making unprecedented infrastructure investments across Ontario. These investments will create jobs and help stimulate significant economic growth. I'm pleased that by unlocking the value of the LCBO lands we can continue building Ontario up for future generations to come.”
“Infrastructure Ontario is proud to have led the procurement process for the sale of the LCBO head office lands. The sale of the lands is a key component to the government’s commitment of unlocking the value of certain public assets for important infrastructure funding, such as roads, bridges and transit projects.”
“The sale and subsequent development plan will enable the LCBO to consolidate our head office functions into one modern, energy-efficient building. The new flagship Queen’s Quay store will ensure this growing, vibrant waterfront community has continued and enhanced access to convenient, one-stop beverage alcohol shopping.”