December 15, 2010
SaskTel announced today that it has reached a Purchase Agreement with Dundee Real Estate Investment Trust for the sale of Saskatoon Square in Saskatoon for $50 million. SaskTel owns 70% of the building and will recognize a gain of approximately $27.7 million.
“SaskTel is divesting of this asset in order to focus on its core business of providing the best communications services to its customers,” said Ron Styles, SaskTel President and CEO. “Saskatoon Square was not core to our business and was a commercial real estate investment, as we owned 70% of the building and only occupied 20%.”
The partners in the investment, MacPherson, Leslie & Tyerman, the Saskatoon Health District and Commerce Holdings will each receive 10% from the sale.
ICR Commercial Real Estate and CB Richard Ellis Commercial Real Estate were hired as brokers to sell Saskatoon Square. It is anticipated the sale will close early January, 2011.
Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, with $1.15 billion in annual revenue and more than 1.4 million customer connections including more than 550,000 wireless accesses, 543,000 wireline network accesses, 225,000 Internet accesses and 77,000 Max™ (TV) subscribers. SaskTel offers a wide range of communications products and services including competitive voice, data, Internet, entertainment, national security, messaging, cellular, wireless data and directory services. In addition, SaskTel International offers software solutions and project consulting in countries around the world. In 2009, SaskTel contributed more than $651 million to the Saskatchewan economy through dollars spent with Saskatchewan-based suppliers and sponsorships to non-profit organizations. SaskTel and its wholly-owned subsidiaries have a workforce of approximately 4,800 employees.
For media inquiries only, please contact:
Darcee MacFarlane, SaskTel Corporate Communications
Telephone: (306) 777-4441