(The following report by Mary Lamey appeared on The Montreal Gazette on September 20.)
MONTREAL — Halifax-based Homburg Invest Inc. has agreed to purchase Montreal’s Central Station complex from CN for $355 million.
The deal, which is expected to close by year’s end, will see Homburg take over management of the railway passenger terminal, parts of the sub-track levels, the Grand Hall and 17-storey office tower. CN will lease its corporate headquarters and train facilities back under a long-term agreement. Via Rail, Amtrak and the Metropolitan Transport Agency will also continue to operate without interruption.
The acquisition gives Homburg a prime downtown location, a stable, quality tenant and the potentially valuable air rights over the station’s parking garage, where as much as one million square feet of office space could be built.
“I’m not thinking it is going to happen tomorrow, but the site has tremendous growth potential,” said Richard Homburg, the real-estate company’s chairman and chief executive officer.
Homburg is a publicly traded holding company involved in
real-estate management and development. Its $2-billion portfolio includes holdings in Canada, the U.S. and Europe. Homburg himself holds a 73-per-cent stake in the business.
The Halifax firm is getting to know Montreal quite well. Last year, it scooped up the Alexis Nihon REIT. It also is behind a $350-million redevelopment plan for the former Viger station, in partnership with the de Gaspé Beaubien family and Europe’s SNS Property Finance.
“We know that other people have looked at developing Central Station, but the timing hasn’t been right. The vacancy rate is still too high to justify new construction, but that will change. In the meantime, we’ve got a very good tenant,” Homburg said.
Montreal’s other vintage rail terminal, Windsor Station, has been put on the auction block by Canadian Pacific. Asked whether he has made a bid for the station or might in the future, Homburg demurred.
“I can’t tell you that. I won’t say yes and I won’t say no.”
Heritage activists have urged that Central Station’s art deco interior, including the frieze that ornaments the station’s concourse, be preserved and protected.