Land sale and lease transactions between the province and Laurentian University will see the university’s creditors get a total of $53.5 million, but also the university paying the province $2.1 million a year in rent.
These details are included in the board package for the upcoming Oct. 17 of Laurentian’s board of governors.
The university officially exited its 2021-2022 insolvency under the Companies Creditors’ Arrangement Act (or CCAA) in late 2022, but it still owed millions of dollars to its creditors as a result of the process.
Under Laurentian’s post-insolvency plan of arrangement, land sales to the province were to fund the pool of money to go to these creditors by Nov. 28, 2025, or the university would default on its obligations.
The first property sold to the province was the Vale Living with Lakes building, which was sold in January 2025 for proceeds of $8 million.
We now know that property sales to the province approved by Laurentian’s board in June add another $45.5 million to the distribution pool, for a total of $53.5 million to go to creditors, the maximum laid out under the plan of arrangement.
This sum still means that creditors will only be paid out a small percentage of what they were originally owed.
The university publicly announced Aug. 28 that the sale of its properties was scheduled to be completed that day.
The individual pricetags for the university property sold to the province is part of the draft minutes for a June 9 special closed meeting of Laurentian’s board, published as part of the Oct. 17 meeting package.
The sale prices are as follows:
- East Residence building and lands ($24.1 million)
- Northern Ontario School of Medicine Building (NOSM) Lands ($16.8 million)
- Security and Maintenance Lands ($2.85 million)
- Parking lot 15 (the “Pit”) Lands ($1.1 million)
- Willet Green Miller Centre (land only) and Vacant Adjacent Lands ($350,000)
- Additional Institutional Lands (adjacent to NOSM – South Bay Road) ($300,000)
About $5.9 million of the $53.5 million from the property sales is going back into LU’s coffers, according to financial documents set to be approved by Laurentian’s board this week.
That’s to reimburse the university for payouts it already made to certain kinds of creditors in 2022, including its secured creditors.
Laurentian’s president’s house was also sold in 2024 for proceeds of $894,000, which was also added to the creditors’ distribution pool.
However, the financial documents also state that Laurentian is retaining that same amount, $894,000.
Laurentian communications staff said that "because the distribution pool is fully funded as a result of the sale of real estate assets to the province, the proceeds of the sale of the former President's Residence are not included in the distribution pool."
The board package also includes details about how much it’s going to cost Laurentian to lease some of that property back from the province.
Sudbury.com previously reported that Laurentian would be paying an annual rent of $496,254 for the Living with Lakes building sold in early 2025.
But when you add in the properties more recently sold and leased back by Laurentian, the university will be paying the province more than $2.1 million in rent.
The minutes from the June 9 Laurentian board meeting gives the following rental figures:
- East Residence building and lands ($1,325,500 per year)
- Security and Maintenance building and land ($222,244 per year)
- Parking lot 15 (the "Pit") land ($82,500 per year)
The property sales and lease agreements with the province were the result of “extensive negotiations,” according to remarks attributed to Laurentian vice-president, finance and administration Sylvie Lafontaine in the draft minutes for the June 9 meeting.
Those negotiations involved Laurentian, the Ministry of Colleges, Universities, Research Excellence and Security and Infrastructure Ontario.
“Following remarks, board members expressed strong support for the transactions and work done to bring them to completion, recognizing them as a crucial step in the university’s financial recovery,” said the meeting minutes.
Heidi Ulrichsen is Sudbury.com’s assistant editor. She also covers education and the arts scene.