News Release

HRM Closes Purchase of Alderney Gate Office Complex Today

(Friday, August 5/05)-- Halifax Regional Municipality has completed its purchase of the Alderney Gate office complex in Dartmouth today.

Alderney Gate in 1988/1990 through a public/private development arrangement that included a long-term municipal accommodation commitment by the former City of Dartmouth of approximately 65,000 square feet under lease for 65 years until 2055.

The land on which the building sits is owned by HRM and the building complex was owned by Sun Life Assurance Company of Canada. HRM exercised its option to purchase the building complex at a purchase price of $22.9 million

A number of HRM business units occupy space in Alderney Gate and account for 67% or 98,500 square feet of the total building area of 146,737 square feet.

"With our current rent structure under the original 65-year lease well above today’s market prices, a move to purchase in the current environment of low interest rates produces significant financial savings for the HRM." says Mayor Peter Kelly. “The opportunity was presented and accepted by Regional Council earlier this year and the purchase will save the taxpayers an estimated $60 million over the length of the original lease agreement.”

Mayor Kelly said the purchase also better diversifies the municipality's real estate interests, providing a better balance between leased and HRM- owned office accommodation.

Other key tenants of the building include the Province of Nova Scotia and the Federal Government of Canada.

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Mayor Peter Kelly
490-4010

John O’Brien
Corporate Communications Officer
490-6531