Consultants to guide the future of Laurentian property

0


The company plans to conduct a four-phase review

Content of the article

A consulting firm will receive more than $ 270,000 to find ways for Laurentian to increase its income through the sale or monetization of its buildings and land.

Publicity

Content of the article

The university, with the blessing of its court-appointed comptroller Ernst & Young, hired Cushman & Wakefield to undertake the real estate review.

The global company, headquartered in Canada in Toronto, is also enlisting the help of four other companies – Education Consulting Services, Urban Strategies, Scion and Mallette-Goring – in its study of school funds.

ECS is “Canada’s premier university space planning, programming and optimization company,” according to Cushman & Wakefield, while Toronto-based Urban Strategies “can ensure that the future campus” is of the right size. From LU is the best designed for future and long-term academic success.

The Scion Group specializes in feasibility and monetization strategies for student accommodation. Local real estate company Mallette-Goring, meanwhile, “will ensure that our exit strategies and asset valuations are grounded in the reality of the local market,” said the consultant.

The review of real property is a mandatory step in the restructuring process that the school undertakes under the Companies’ Creditors Arrangement Act.

“A significant portion of LU’s assets are represented by its real estate portfolio, including the land and buildings on which the main campus is located, as well as off-campus real estate,” the Monitor said in a report released on June 29.

“LU noted that with the academic programming changes and workforce changes recently implemented as part of CCAA procedures, there may be opportunities to alter its use of space in various buildings and / or opportunities to monetize certain assets. “

Publicity

Content of the article

In its submission to a request for proposals, Cushman & Wakefield stated that its objective in conducting the review would be “to investigate the potential for monetization of various LU real estate assets with the aim of maximizing value for stakeholders. of LU, while allowing LU to continue its operations in the future, in accordance with its strategic plan.

The company also recognized that “the monetization of non-core real estate assets should be balanced with an approach and process that ensures LU’s future viability as a premier post-secondary institution in Northern Ontario, serving the community of Sudbury and Northern Ontario. “

The company plans to conduct the review in four phases, with steps to include an assessment of campus space needs, analysis of third party leases (and lease exit options), and strategies to monetize assets and student residences.

In a snapshot of the Sudbury real estate market, Cushman & Wakefield noted that Laurentian “has assets in desirable locations,” including downtown and south end.

“The Mallette-Goring team is well equipped to provide advisory services (through our partners at Cushman & Wakefield) regarding the valuation of LU’s real estate portfolio and the identification of estates. opportunity, ”says the cabinet.

The city’s residential rental market is “quite solid, with rising rental rates, a historically low vacancy rate and a lack of ‘high-end’ supply,” says the consultant, and the campus of Laurentian from the wallet.

Publicity

Content of the article

Many Sudbury groups have expressed concern over the sale of a wilderness property surrounding the LU campus, which includes a network of trails for skiers and hikers, and a beach on Lake Nepahwin.

Art groups also fear for the future of the Sudbury Art Gallery, which is housed in a building belonging to the Laurentians – the former Bell Mansion – on the edge of Bell Park.

However, Cushman & Wakefield has apparently not ruled out selling or renting either or deriving income from them in any other way.

In its bidding submission, the company says an analysis of excess land – including green space – could “lead to future opportunities to monetize parts of the portfolio.”

The firm also notes that the university has a number of “unique” holdings, including the McEwen School of Architecture, the Living with Lakes Center and the Sudbury Art Gallery.

The real estate review is part of the second phase of the restructuring process under the CCAA.

The first phase included sweeping cuts to university programs and jobs.

There remains to be dealt with the claims of creditors, including professors and staff who lost their posts and were denied the severance pay to which they were entitled under their contract.

[email protected]

comments

Postmedia is committed to maintaining a lively but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Visit our Community rules for more information and details on how to adjust your E-mail The settings.


Share.

Comments are closed.