Bombardier is selling its Downsview property for $635 million to the Public Sector Pension Investment Board (PSP Investments).
According to the company, the transaction is expected to close in the second quarter of 2018 and Bombardier will continue to operate from Downsview for a period of up to three years following closing, with two optional one-year extension periods.
“As part of Bombardier’s five-year turnaround plan, we have been reviewing our facilities worldwide to ensure we have the most efficient and cost effective operations necessary to support our growth objectives,” said Alain Bellemare, President and Chief Executive Officer, Bombardier, in a release. “Today, we only use about 10 percent of a 370-acre site at Downsview and bear the entire cost of operating a 7,000-foot runway.”
Meanwhile the buyer, PSP Investments said the purchase is a perfect fit.
“This investment is a perfect fit for PSP as it supports our long-term real estate investment strategy,” said Neil Cunningham, President and CEO, PSP Investments. “We have a stellar track-record in working with large, complex projects across our entire investment portfolio, and we are proud of our continued commitment to investing in Canada.”
Downsview spans approximately 370 acres, and Bombardier has owned and operated the site since the early 1990s.