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SOMBA K'E/YELLOWKNIFE
The GNWT is in store for a small windfall from its diamond factory building assets after a buyer has been found for the two airport-side properties at market price.

The two Archibald St. diamond-cutting plants on diamond row, pictured, are being purchased from the GNWT by an unnamed buyer. - NNSL file photo

The Department of Public Works and Services this year listed the Arslanian Cutting Works and Polar Ice cutting and polishing factories on Archibald St., also known as Diamond Row, through Coldwell Banker at an appraised value of $950,000 each, after the former owner of both facilities went into receivership. The previous owner owed more than $42 million to creditors, including $5.8 million to the GNWT at the time.

A sale is now pending to an unnamed buyer on the two buildings, located next door to expediting company Matrix Aviation Solutions Inc., according to Brian Nagel, director of infrastructure operations.

"We are under covenant not to disclose any information pertaining to the sale of the diamond factories. However, the purchaser has authorized me to say that the buildings are being purchased for the appraised value and that the sales will conclude on Nov, 30 2012," Nagel said.

Rod Stirling, partner of Coldwell Banker Northern Bestsellers, said "a lot of interest" was shown for the airport properties during the weeks they have been listed, but the identity of the buyer, and the planned use of the buildings, cannot be disclosed until the sale is finalized at the end of the month.

The fact that the buyer is agreeing to the nearly $2 million appraised value is good, Stirling said.

"It's good when you achieve the appraised value. It just makes sure that the value is there for the seller," Stirling said.

Matrix, which bought the first of the GNWT's three Yellowknife diamond factory assets two years ago, has enjoyed the use of the Archibald St. building for its air-related expediting activity, according to owner Martin Knutson.

"We're very happy, content, tenants at the airport, and life is good," Knutson said.

The two Archibald St. buildings being sold have been empty since Matrix moved in.

Knutson said he has not heard about who the buyer of the two buildings is.

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