More details released on Laurentian U’s plan to sell land worth $53.5M to the province

In a crucial development, creditors owed more than $180 million by Laurentian University have approved a plan that will allow them to recover part of what they are owed, and allow LU to emerge from insolvency.(File photo)

On Thursday, Laurentian University gave an update on a plan to sell $53.5 million of its real estate to the province, money that is being used to pay off creditors.

First announced in May 2022, the provincial government is buying 68.75 acres from LU, which represents approximately nine per cent of the university’s total holdings of more than 750 acres.

While the university will still have access to the land, ownership will go to the province. LU declared insolvency in February 2021 and emerged from the process last November.

Revenue from the real estate sale was used to pay creditors, who received between 14. 1 cents and 24.2 cents for each dollar they were owed.

Laurentian said Thursday it has established an agreement on a term sheet for the sale of real estate worth up to $53.5 million.

“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,” LU said in a news release.

“After due diligence, including consultations with Indigenous communities, specific assets will be confirmed for sale. The net proceeds of the sale will be used to pay the university’s creditors.”

The assets to be sold include five buildings, 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

“The due diligence process will serve to confirm that public trails (including the Trans Canada Trail System and the Rainbow Route Sudbury trail network) are properly identified,” the release said.

“The university seeks to ensure continued public access to the trail networks and green space.”

“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,” Dr. Sheila Embleton, interim president, is quoted as saying in the release.

“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.”

Negotiations with the province on the purchase and sale agreement should be completed by Nov. 28, 2025.