Nortel ( NT) set plans to sell its Brampton, Ontario, headquarters compound to Rogers Communications ( RG) for $100 million.

Toronto-based Rogers will acquire the almost 1 million square-foot facility, including fixtures and certain personal property located at the facility, and 63 acres of land.

"This agreement is a win for both companies," said Nortel chief Bill Owens, who is due to leave next month after the appointment of former Motorola ( MOT) exec Mike Zafirovski. "This is another proof point that we continue to execute on our strategy of cost leverage through business simplification. A key part of this strategy has been to ensure that our real estate requirements are sized to the needs of current business realities in order to maximize our return on assets, bring our teams together, and minimize operating expense. We welcome Rogers Communications to Brampton as they acquire one of the most impressive corporate facilities in Canada."

"We're excited to return to Brampton, the city where our cable operations began in 1967," said Rogers chief Ted Rogers. "Rogers is looking forward to moving into this facility and continuing our focus on innovation."

Pending completion of due diligence mid-December, Rogers will take possession of the site on January 4, 2006. Nortel is planning to relocate to two offices in the Toronto region, a sales studio and a larger corporate center. "Nortel will continue to have a significant presence in the Toronto area in order to remain close to customers, be in close proximity of the financial capital of the country and to leverage the large talent pool in the area," said Owens.

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