The Government sold a portfolio of seven federal office buildings to Larco Investments in a controversial sale-leaseback deal in 2007.  Critics called the sale a massive giveaway of prime public assets.  The Minister of Public Works at the time, Michael Fortier, described the transaction as a fair deal for taxpayers.

Larco Investments is landlord to dozens of federal agencies.  The Canada Revenue Agency is a major tenant in three of the buildings (see table) – but that agency is not the only government tenant.

Click on the name of the building to see other Government tenants.

Federal Building Sold/Leased-back to Larco Location Largest Tenant
Harry Hays Buildings Calgary Canada Revenue Agency
Canada Place Edmonton Canada Revenue Agency
CRA Building Montreal Canada Revenue Agency
Royal Canadian Mounted Police Building Montreal RCMP
Skyline Complex (Towers I-VII) Ottawa Canadian Food Inspection Agency; Agriculture & Agri-Food Canada
Thomas D’Arcy McGee Building Ottawa Courts Administration Service
Joseph Shepard Building Toronto Employment & Social Development Canada

In 2014, the CBC obtained documents that revealed years of bickering, allegations of over-charges, and budget disputes between Public Works and Maple Leaf Property Management, the Larco-owned affiliate handling operations at these government buildings.


Larco can now add one more building to its list of CRA offices.  The historic Dominion Public Building in Toronto, which houses about 1,500 government workers including CRA staff, was sold to Larco in 2017.  In January 2017, Public Services (formerly Public Works) transferred the building to the federal government’s property arm, Canada Lands Company.  Canada Lands then sold the building to Larco.

Canada Lands Company CEO, John McBain, served as Assistant Deputy Minister of Public Works’ Real Property Branch when Larco overtook day-to-day operations of the seven federal buildings (listed above) in 2009.

The sale of the Dominion Building came on the heels of the federal government’s 2017 budget which promised to direct $524 million to the CRA to prevent tax avoidance and evasion.