Friday, February 02, 2007

Canadian Federal Government To Sell $1.5 Billion In Real Estate

The government of Canada has decided to sell off about $1.5 billion of the current real estate portfolio. Most of the properties are in the Ottawa region and consist of office buildings. In their fool proof scheme the feds plan to sell the properties, have the buyers fix the properties to current standards (which the government was unwilling to do), and lease the properties back on 25 year leases. Seem like a waste of money to me.

Historic Banff Mansion on Market for $9.9 million

A historic Banff property, built in the late 19th Century is being put up for sale. The property has many of the luxuries of a modern home including: heated floors, 3 car garage, 10 person hot tub, and the price includes all the furnishings and paintings.

1 comment:

Dave said...

Indeed, it does not make sense for the federal government to sell off real estate only to lease it back. Even if the lease rates are at a substantial savings, it's a very short-sighted strategy. Maybe they should be looking at what kind of real estate they will require in coming years and devise a long-term investment plan.