$TT20M discrepancy in purchase of Toronto building for T&T consulate

The Trinidad and Tobago government hands over a cheque for Cdn$4.25 million on Sept. 15, 2009 to conclude the deal to buy a commercial property at 185 Sheppard Avenue West, Toronto, Canada.

That figure tallies with the amount of TT$24.6 million allocated for the purchase of a building for the country's consulate in Canada, which is the full list price of the building.

But the government has not explained why, despite a signed and sealed deal for the building, it increased the allocation for the Toronto real estate in its 2010 estimates from TT$24.6 million to TT$46.2 million.

The real estate documents on the Toronto Multiple Listing Service (MLS) reveal some critical details of the transaction, which leaves questions about why there was a need to increase the allocation by over Cdn$4 million. Here are the figures:

• Allocation for 2009 - TT$24.6 (Cdn$4.284 million, using the official currency conversion rate on Sept. 11, 2009)
• Allocation for 2010 increased - TT$46.2 Million (Cdn$8.038 Million, using the same currency conversion)

The figures show an additional allocation of just under Cdn$4 million or more than TT$20 million. The million-dollar question that remains is this: What is the extra money for?

Even if it is for taxes, the figure would be much less. The MLS documents show annual taxes for 2008 on the property at Cdn$93,856 (TT$539,436), which could cover taxes at the 2008 rate for several years.

In addition the 16,013 square foot building has revenue potential. Here's part of the description of the property as posted by the real estate agency that listed it:

"Very Rare 16,000 S.F. Owner User Office Building With Underground Parking Close To Sheppard Subway...Suitable For Law Firm, Accounting, Not For Profit, And Other Professional Office Uses. Easy To Divide 3rd Floor 6,000 S.F. To 3rd Party Tenant. 30 Parking (24 Underground). Currently Leased 100% To Law Firm To End Of February 2010. Rights For Earlier Possession...7 Washrooms, numerous Kitchenettes, 3 Boardrooms With Numerous Private Offices."

The listing was by AVISON YOUNG COMMERCIAL REAL ESTATE (ONTARIO), BROKERAGE at telephone: 416-955-0000.

The government has not explained:

• If it will take up the option to allow the existing lease to continue until February 10, 2010
• The revenue from the lease for the period Sept. 15, 2009 to Feb. 10
• When it will move into the building
• Whether it will explore other revenue earning potential

The building manager at 185 Sheppard West was not available when we called Friday to enquire about whether the lease will continue or the monthly/annual rental.

What appears clear is that there is a huge million-dollar discrepancy in this transaction. To borrow a line from Prime Minister Patrick Manning, "where the money gone?"

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