Nortel is selling its headquarters complex in Brampton Ontario in a deal worth some $100 million.
Rogers Communications of Canada is buying the Nortel complex, which includes 63 acres of land and nearly 1 million square feet of office space. The deal also includes some fixtures and what Nortel called “certain personal property”.
The deal is part of Nortel’s consolidation efforts.
“This agreement is a win for both companies,” said Bill Owens, vice chairman and outgoing chief executive officer of Nortel. “This is another proof point that we continue to execute on our strategy of cost leverage through business simplification.
“A key part of this strategy has been to ensure that our real estate requirements are sized to the needs of current business realities in order to maximize our return on assets, bring our teams together, and minimize operating expense,” he added.
Nortel said it would relocate its headquarters to a sales studio and a corporate center in Toronto.
“Nortel will continue to have a significant presence in the Toronto-area in order to remain close to customers, be in close proximity of the financial capital of the country and to leverage the large talent pool in the area,” Owens said.