November 7, 1997
(Municipal and Provincial Affairs)

The following is being distributed at the request Newfoundland and Labrador Housing Corporation:

Newfoundland and Labrador Housing Corporation selling Elizabeth Towers

Newfoundland and Labrador Housing Corporation (NLHC)is selling the Elizabeth Towers apartments in St. John's. The crown corporation has entered into a sales agreement with MRK Holding Ltd. of St. John's which bid $5,259,900 for the building. The move was announced today by Art Reid, minister responsible for the crown corporation.

Sale of the eight-storey apartment and commercial complex is part of the ongoing divestiture by NLHC of properties that are more appropriately operated by the private sector, the minister said. Elizabeth Towers is rented at market rates, unlike the corporation's social housing where rents are subsidized for low-income tenants.

"NLHC has now sold 85 per cent of its original portfolio of market rental properties," Mr. Reid said. "The sale of these properties has provided the opportunity for greater private sector involvement in the province."

The agreement to sell Elizabeth Towers is the culmination of a sales effort begun in November 1996 when the corporation called for proposals from parties interested in purchasing the building. While this did not result in an acceptable offer, the original respondents -- along with others -- indicated they were interested in further pursuing purchase of the building. Based on this interest, submissions were invited in July from six interested parties. Four offers were received on August 29, 1997.

Elizabeth Towers is located on Elizabeth Avenue in the east end of St. John's. It was built in 1968 by the St. John's Housing Corporation which felt there was a need at the time for upscale apartment accommodations in the city. Newfoundland and Labrador Housing Corporation assumed ownership of the building in 1981 when the two agencies amalgamated.

A major modernization program was undertaken on the building from 1986 to 1991. The work included replacement of the exterior cladding because of a serious identified safety hazard. Plans call for the sale to be concluded on November 28. There have been three previous attempts to sell the building.

Contact: Karen Humphreys Blake, Director of Corporate Communications, NLHC, (709) 724-3054.