Toronto-based electronics manufacturing services player Celestica Inc., has entered into an agreement for the sale of its Don Mills property, which includes the site of its corporate headquarters and its Toronto manufacturing operations.
The site is being sold to a special purpose entity to be formed by a consortium of three real estate developers, namely Diamond Corp., Lifetime Developments and Context Development Inc. The consortium intends to work with the City of Toronto to develop a mixed-use community including office, retail and residential uses. If the transaction is completed, the purchase price will be approximately CDN$137-million, exclusive of applicable taxes and subject to adjustment in accordance with the terms of the agreement of purchase and sale, including for certain density bonuses and other adjustments in accordance with usual commercial practice.
As part of the Property Sale Agreement, Celestica will enter into an interim lease for its existing head office and manufacturing premises on a portion of the real estate for an initial two-year term on a rent-free basis (subject to certain payments including taxes and utilities), which will be followed by a longer-term lease for the new home of Celestica’s corporate headquarters on terms it would settle with the Property Purchaser. There can be no assurance that this transaction will be completed within two years or at all.