William Ashley Posted October 20, 2010 Report Posted October 20, 2010 (edited) The DND bought nortels Campus for 200 million to house the new DND headquarters... Has me think this is a bit like the DND doing a pentagon. I think it is novel. THe only thing I'm wondering is... is 200 million for the purchase that is 1/5th of a billion dollars fair market value for this? I think it is cool and stuff but isn't a 200 million dollar building sorta expensive? I could say that about a lot of things like 65 aircraft costing 45 times that 400 times that amount. Currious stuff. I'm really not too knowledgeable about nortels campus - what did the guys at the DND get for the 200 million? The pentagon seems to cost far less than this purchase... here are some facts and figures. http://pentagon.afis.osd.mil/facts-area.html BTW this deal was unfolded the same day someone used a high powered rifle to fire multple shots at the pentagon.... -------- Is there a theme I detect? Edited October 20, 2010 by William Ashley Quote I was here.
William Ashley Posted October 20, 2010 Author Report Posted October 20, 2010 (edited) BTW I'm sure CSE is gonna have real fun securing this one... Previous occupants after Nortel, --- Ericsson, Ciena and Avaya The deal states the lease cannot be terminated for at least 30 months. If someone buys the property, Ciena must be given 30 months notice and if the company is forced out earlier, there could be a penalty payment of more than $33 million. These lease deals are perhaps all going beyond the period of occupation intended by the DND.... is this to say 100 million in penalties will need to be paid? Or that the facilities must be secured within 2 years... of the lease termination? the federal government intends to begin initial occupancy of the office space in 2011. Arn't there 12 months in a year? So Nortel sold for 200 million and needs to pay out 100 million in penalties? Edited October 20, 2010 by William Ashley Quote I was here.
M.Dancer Posted October 20, 2010 Report Posted October 20, 2010 is 200 million for the purchase that is 1/5th of a billion dollars fair market value for this? The Nortel campus is a large one, comprising of 11 interconnected buildings on 370 acres of land. Quote RIGHT of SOME, LEFT of OTHERS If it is a choice between them and us, I choose us
William Ashley Posted October 21, 2010 Author Report Posted October 21, 2010 After looking into this a bit more it appears that there is an annual revenue from renting portions of the site for about 30 million a year. The leases being long term (up to 10 year period I think) would actually pay for the building. The two questions that are still in my mind are 1. Do they plan on continuing the leases (30 million annual revenue) or canceling them (many millions in penalties) 2. How do they intend to actually secure the large site - will a couple signs go up indicating strip searches and some fencing or will this actually be a "Secure" location. As most in town DND office sites I've seen don't appear all that secure in terms of "defence sites" Quote I was here.
William Ashley Posted October 26, 2010 Author Report Posted October 26, 2010 (edited) http://www.ottawacitizen.com/business/Winners+losers+Nortel+campus+sale/3697121/story.html It seems the price of the 200 million dollar purchase could go up for retorgrading. Also the DND wants to cancel the lease contracts.. I wouldn't if I were them. UNless absolutely required, as the penalty is 35 million for ciena (and it is a 5 year term regardless) - meanwhile the leases of a few of the buildings will pay not only for the purchase cost in 10 years... but also pay for any upgrades. Half a billion dollars is more than the pentagon cost. How much are the leases on other DND sites costing (also suprised the DND leases property.. for its administrative infrastructure.. I'd sorta expect them to own the buildings -- since they had whole military bases they sold. Edited October 26, 2010 by William Ashley Quote I was here.
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