Web Trainsamtrak - canadia national - union pacific - rss - mobile version - uk version - web trains international

Sale of Central Station Complex in Montreal

09/28/2007 AT 12:08

The transaction, subject to customary closing requirements and regulatory approvals, including federal government approval of an agreement to protect the heritage features of Central Station, will generate proceeds of C$355 million for CN. The transaction is expected to close by yearend.

Claude Mongeau, CN executive vice-president and chief financial officer, said: “We are very pleased to have concluded this transaction with Homburg, which has a solid reputation for managing and developing major urban properties. With a new property manager in charge of the Central Station's extensive retail/commercial and services facilities, the CSC's role as a major downtown Montreal transportation and commercial hub can be enhanced. At the same time our agreement with Homburg allows CN to monetize a key real estate asset, generating significant value for its shareholders.”

Richard Homburg, chairman and chief executive officer of Homburg Invest, said: “We are very excited about building a lasting relationship with CN as our anchor tenant. The station is a landmark in downtown Montreal and we are committed to protecting its heritage features. We also see an opportunity to turn this property into a Montreal icon with the potential development of one million square feet for the site. Homburg already has investment and development projects of almost C$1 billion in the Montreal market, and this transaction reinforces our commitment to a marketplace that we consider highly attractive. For our shareholders, the growth potential and prime location of this property represent significant value.”

Under the agreement with Homburg Invest, CN will lease back its 17-storey office headquarters building and Central Station railway passenger facilities on a long-term basis. Central Station includes the Grand Hall, train platforms and portions of the sub-track level.

CN and Homburg structured the sale-and-leaseback transaction to reflect the long-term presence of CN's corporate headquarters in Montreal and to ensure continued operation of Central Station for use by VIA Rail Canada Inc., l'Agence metropolitaine de transport, and AMTRAK.

Brookfield Financial acted as the exclusive advisor to CN in the transaction.

CN – Canadian National Railway Company and its operating railway subsidiaries – spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at www.cn.ca.

Homburg, with its head office in Halifax, N.S., owns and develops a diversified portfolio of quality real estate, including office, retail, industrial and residential properties throughout Canada, the United States and Europe. The Company's properties total over 14.5 million square feet, representing in excess of C$3 billion in total assets, prior to this transaction with CN.

Gearing up for Back to School

With back-to-school jingles and sales beginning, students are budgeting their hard-earned summer funds with a year full of activities in mind.

UTU labor agreement on former WC

CN said United Transportation Union (UTU) members on its former Wisconsin Central (WC) territory have ratified a new collective labor agreement providing general wage increases through mid-2011.

CN plans sale of Central Station in Montreal

CN announced today plans to sell its Central Station Complex (CSC) in Montreal, and to lease back its corporate headquarters building and the railway passenger facilities of the station, two key components of the CSC.

CN pursues alternative fuels growth strategy

CN announced its alternative fuels strategy focused on generating new business from the transportation of ethanol and ethanol feedstock, wood pellets, and biodiesel fuel.

CN to build C$20-million transload centre

CN announced it will construct a C$20-million transload operation and intermodal rail terminal in Prince George, B.C., for the export of containerized products to and from Asian markets through the new Port of Prince Rupert, B.C., rail/maritime intermodal facility.

CN derailment disrupts VIA service

Due to a 32-car Canadian National freight train derailment east of Kingston, Ontario, this morning, VIA Rail Canada is replacing its regular train service with motor coach between Toronto and Montreal/Ottawa, in both directions, until the line is reopened to rail traffic.

2007 1st Quarter News Releases

CN will issue its fourth-quarter 2006 financial and operating results on Jan. 23, 2007, shortly after 4 p.m. Eastern time (ET). CN’s senior officers will review the results and the railway’s outlook later that day in a conference call/webcast starting at 4.30 p.m. ET.

© Copyright Web Trains 2021
Site and contents are protected by the french "droit d'auteur" and the Code of the French Intellectual Property
Protected by time-stamping and deposited to an usher
Reproduction not allowed

Privacy Policy - Terms of Service