New research shows the Conservative government lowballed the price of federal buildings it recently sold as a P3 scheme.
The Informetrica analysis, commissioned by the Public Service Alliance of Canada, shows the undervaluing of the real estate assets means a $400 million windfall for Larco Investments, the corporation that bought the buildings.
In another development, a recent Federal Court ruling has forced the Conservative government to pull two Vancouver properties off the auction block. The court ruled that the government failed to consult with the Musqueam Band, on whose traditional territory the buildings are located.
The Conservative government continues to push its plan to sell $1.5 billion worth of office buildings and then lease them back through 25-year P3s despite strong criticism it “is bad public policy and lazy thinking” as well as a taxpayer ripoff. The Harper government is pursuing the P3 redevelopment or all-out sale of a further 31 federal buildings.
PSAC has been leading the fight to stop federal building privatization. They have an excellent online backgrounder on the issues, available in two parts.