Just an update from an infrastructure trade journal re: the terminal sale. Elsewhere, Dec. 9 was identified as the date by which bids were to have been received, but I haven't heard anything further. Based on the political and business uncertainty, I would be surprised if Porter $750mm out of this process (although I bet they're actually just looking to pay back some of that mezzanine debt, maybe with some of the proceeds being contingent on de-risking).
Dec. 5: Billy Bishop terminal sale advances
Three teams are involved in the auction for the Billy Bishop passenger terminal in downtown Toronto, InfraAmericas has learned.
Several industry sources have indicated that Ferrovial, Brookfield and Macquarie are pursuing the asset. The firms declined to comment.
Several Canadian pension fund have dropped out of the running, InfraAmericas understands.
InfraAmericas understands the asset is valued at approximately CAD 750m (USD 660m). Questions remain regarding the airport’s growth potential, since Porter Aviation is the only airline. There are also concerns regarding the impact on passenger volumes at Billy Bishop, since the opening of the Toronto Pearson International Airport Rail Link will reduce travel time to Pearson International. A market source told InfraAmericas there is also concern over the need for a federal government guarantee to protect investors should the the airline go under.
Final bids are due before Christmas. A winning bidder is expected shortly after final bids are lodged, as InfraAmericas previously reported.
Porter Aviation, owner of the airport terminal, announced the launch of its auction process at the start of September. RBC and Barclays are advising. Norton Rose is providing legal advice.