CN Selling Montreal Headquarters Building

[CPRTim]

CN plans to sell their Montreal Headquarters Building and Passenger Station Complex.

http://www.cn.ca/about/media/news_relea ... 0518.shtml

[Dieter]

"Claude Mongeau, executive vice-president and chief financial officer of CN, said: “We believe the sale and lease back transaction will put a highly experienced property manager in place to unlock the great potential of this inter-city passenger and commuter rail transportation hub and retail centre, including one million square feet of space available for future development."

Gee, now if Claude Mongeau thinks there is such "Great Potential" for the property, why are they getting rid of it? CN Shareholders should be screaming. It's prime real estate, once they dump it, they'll never get it back. If they want to leave the offices and lease the place out, fine.

This is a classic case of corporate mental retardation.

D/

[Tadman]

Naw, in today's business world, a railroad should not be in the business of property management - they should focus every ounce of their financial capital and intellectual capital towards running a mainline railroad. So for the same reason branches are sold to shortlines - even though they are valuable traffic generators - the office building should be sold to a well-vetted professional property manager that can use their own financial and intellectual capital to get the most out of that office space. If they do, it's a better deal for CN and the manager.

[NS VIA FAN]

SOLD!....For $355 Million!

http://www.cn.ca/about/media/news_relea ... 0919.shtml

[bufftbone]

thus the transition begins CN (Canadian National) becomes.....


CN (Chicago National)!!!

with the EJ&E purchase and all.......

[NS VIA FAN]

thus the transition begins CN (Canadian National) becomes.....


CN (Chicago National)!!!

with the EJ&E purchase and all.......

Not really..........It's a Real Estate transaction. CN is leasing it all back on a Long Term basis so they will be in Montreal for awhile yet!

[Tadman]

I've always thought they should rename to Canada & New Orleans, or Chicago Northern. They're neither Canadian nor nationalized now, and after forty years of using just "CN" as their brand, nobody knows what Canadian National really is.

[bufftbone]

I've always thought they should rename to Canada & New Orleans, or Chicago Northern. They're neither Canadian nor nationalized now, and after forty years of using just "CN" as their brand, nobody knows what Canadian National really is.

Well put. I couldn't have said it better myself.

[fire651]

" They're neither Canadian"

That's breaking news! Since when?...


"and after forty years of using just "CN" as their brand, nobody knows what Canadian National really is "


In your inner circle, perhaps...

[bufftbone]

" They're neither Canadian"

That's breaking news! Since when?...


"and after forty years of using just "CN" as their brand, nobody knows what Canadian National really is "


In your inner circle, perhaps...

I'm pretty sure that he was being sarcastic. You write your response as if you were a higher up for CN.

[lakeshoredave]

I definitely see why CN sold their HQ's in Montreal. Most of their operations are now based outta Chicago, then probably Toronto would be the 2nd busiest spot.

[fire651]

As of this morning, CN is still headquartered in Montreal. CN is selling non-rail real estate properties not moving the HQ.

[gp9rm4108]

CN corporate headquarters HAVE TO STAY in Montreal. It's some politcal thing I think. I've read the reason many times but it just doesnt stick.

[NS VIA FAN]

CN corporate headquarters HAVE TO STAY in Montreal. It's some politcal thing I think. I've read the reason many times but it just doesnt stick.

It was a Act Of Parliament by the Government Of Canada when CN was Privatized that requires the Headquarters to remain in Montreal. CN might be a private company now but the enabling legislation of the Act still stands. (e.g: You might own your house but the covenants on the property you purchased go with it)

Selling their Headquarters and Central Station complex is a real estate transaction which generates $355 million for CN and gives the complex to a company better suited to develop and maintain the property.

They are not moving out and if you read the press release, the longterm lease-back was part of the transaction: “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.”

Central Station is a huge complex and the heart of Montreal’s underground network linking office towers above. The 1000 room Fairmont Queen Elizabeth Hotel (a former CN Hotel) Place Ville Marie and Place Bonaventure are directly above and built over the tracks and entrance to the Mount Royal Tunnel.

http://www.vieux.montreal.qc.ca/plaque/ ... are_3a.htm

http://www.stcum.qc.ca/English/metro/images/c15.pdf

http://www.fairmont.com/queenelizabeth/

Lots of photos here going back to the original construction in the 1940's.

http://imagescn.technomuses.ca/search/s ... e=&subject

[Tadman]

Mr. Fire, my inner circle is the Wall Street Journal and CNBC - I don't have an little circle of railfans in my office. Although CN is nominally a Canadian company and does stand for Canadian National, those that have paid attention notice that CN has gone on a massive acquisition binge in the US, also acquiring and American CEO, and American operations base (homewood) and has tried, since 1962, to get away from the "Canadian National" moniker.

Also, your "inner circle" comments are not in the spirit of the "treat others with respect" policy here.