Province of Manitoba to License Operations of Property Registries to Teranet
Modernizing Property Registry will improve service for Manitobans
TORONTO, Dec. 13, 2012 /CNW/ - Teranet Holdings LP President and CEO, Jay A. Forbes announced today that the company has entered into an agreement in principle with the Province of Manitoba for a long-term license to operate The Property Registry (TPR).
"We are pleased to have this opportunity to work with the Province of Manitoba to modernize the infrastructure, systems and processes of TPR," said Jay Forbes. "Teranet has a proven track record of working with government to improve citizen-centric services through enhancements in service delivery and end-user satisfaction.
Under the terms of the agreement, Teranet Manitoba, a new entity headquartered in Winnipeg, would be granted an exclusive, 30-year license to operate TPR's Personal Property and Land Title registries on behalf of the Province of Manitoba. Teranet would provide the Province with an upfront payment of $75 million and annual royalties starting at an estimated $11 million per year, growing to an estimated $24 million by end of term. In addition, Teranet would invest approximately $35 million in systems development to make property searches and registrations available through a much more convenient, faster and secure online system. The completion of the transaction will be subject to the satisfaction of certain conditions and is expected to close in the first half of 2013.
"This arrangement exemplifies our modern approach to governing," said Manitoba Finance Minister Stan Struthers. "It will result in better service for the public, a stable revenue stream for government, a new company headquartered in Winnipeg, and it reduces the size of governments without putting any Manitobans out of work."
The Province of Manitoba will continue to provide Manitobans with a guarantee of title. The data, such as land surveys and property titles, will also continue to be solely owned by the Government.
"Teranet has a business model that governments can use to create immediate, material value from their assets," Forbes continued. "Further, our collaborative approach allows government to improve productivity and efficiency, leading to reduced operating costs and better service delivery."
An international leader in electronic registration, Teranet has provided land registration and writ services on behalf of the Government of Ontario for the past two decades. Ontario was the first jurisdiction in the world to provide electronic registration of land-related documents, which enhances security, improves the accuracy and integrity of the land registry database and improves the efficiency for all stakeholders. In 2010, the Province of Ontario renewed its long-standing business partnership with Teranet by extending its exclusive licenses for an additional 50 years.
Founded in 1991, Teranet owns and operates Ontario's Electronic Land Registration System, one of the world's most advanced land registration systems, enabling users to conduct electronic registrations as well as title and writ searches relating to real property. Teranet's comprehensive suite of related data products have fundamentally increased the real estate industry's ability to provide efficient and secure services to the public. Teranet has built a well-established customer base and strong brand confidence, providing electronic services to a network of over 80,000 end users including lawyers, paralegals, real estate brokers and agents, search houses, title insurers, financial institutions, governments, police services, utilities, investigators and appraisers. Teranet is owned by Borealis Infrastructure, a leader in direct infrastructure investing with over a decade of investment experience and almost CAD 20 billion in capital under management. Borealis invests in and manages a diversified portfolio of large-scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and government-regulated services. It has offices in Toronto, London and New York. Borealis is the infrastructure investment arm of the OMERS Worldwide group of companies. OMERS is one of Canada's largest pension funds with net assets of more than CAD 55 billion and an AAA credit rating. For more information about Teranet, visit www.teranet.ca.
About The Property Registry (TPR)
The Property Registry was formed in 1997 by merging the Land Titles Office and the Personal Property Registry. Our main function is to provide certification of titles to land, maintain land records, and provide reliable information of financial interests in personal property to the public. We keep all records of land ownership and survey plans. Are you buying or selling a house? We register the documents that change ownership of the real estate property and guarantee the results. Do you want to place a lien or file a notice against a specific property? Do you want to order a copy of information set out in a title? We can record your documents or forward you the copy of a document already registered.
SOURCE: TeranetFor further information:
Kate Woodley, Communications Leader
416-360-8863, ext. 2170