Canada’s most significant aerospace manufacturing firm Bombardier has announced that it has agreed to sell its Downsview property in Toronto to the Public Sector Pension Investment Board (PSPIB) in a deal worth CAD$816mn.
The sale of the property is part of the company’s continuing cost cutting strategy, having recently taken the decision to sell the majority stake in its CSeries business to Airbus in order to balance the company books.
“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 CEO of Bombardier. “Today, we only use about 10% of a 370-acre site at Downsview and bear the entire cost of operating a 7,000-foot runway.”
The agreement will see Bombardier retaining a lease for the operation of the property for the following three years upon closing of the deal, with two additional one-year extension options at the end of this period.
“We’ve successfully reached the halfway point of our turnaround plan with a strengthened balance sheet and a clear focus on execution and growth,” Bellemare continued.
Off the back of this, Bombardier also revealed that it has signed an agreement with the Greater Toronto Airports Authority for a long-term lease of a property located at Toronto Pearson International Airport, spanning 38 acres, for a new assembly plant that will be used for its global business jets.
PSPIB are yet to announce any definitive plans for the property location.