"We see an opportunity to turn this property into a Montrealicon," CEO Richard Homburg offered in announcing the agreement, onehe says "reinforces our commitment to a marketplace that weconsider highly attractive." Homburg notes that his firm hasalready spent more than $1 billion on commercial real estate inGreater Montreal, displaying confidence that the largest city inthe province of Quebec will thrive going forward. Located along theSaint Lawrence Seaway, the metropolis of 3.6 million people isstill the largest inland port in the world, providing for a diverseeconomy.

CNR's CFO, Claude Mongeau, praises Homburg Invest's reputationfor managing and directing complex urban properties. Besidesexpressing confidence that the station's role as a centerpiece ofdowntown Montreal can be enhanced, Mongeau says the agreement willallow his organization to "monetize a key real estate asset,generating significant value to shareholders." The deal alsoensures CNR's presence in the city, he says, as well as continuedoperation of the station by such rail lines as Amtrak and VIA RailCanada Inc., along with the regional transit authority.

The sale/leaseback does require federal government approval ofan initiative to protect the historical features of the station, agoal that Homburg insists his firm is eager to achieve for afacility now approaching its 65th anniversary. Should the proposalpass muster on that matter and the normal regulatory clearance,both sides say they anticipate closing on the deal by year'send.