SNC-Lavalin agrees to $170M sale-leaseback of Montreal headquarters
The company has sold its head office to a real estate firm and will lease it for 20 years, an initiative to consolidate its footprint in Montreal and cut costs
MONTREAL—Engineering services firm SNC-Lavalin announced June 22 that it has completed the sale of its Montreal head office building and the adjacent empty lot of land for approximately $170 million to GWL Realty Advisors.
As part of the deal, SNC-Lavalin has leased back the building for 20 years and aims to undergo an extensive renovation project to modernize the workspace.
“We continue to move forward with our strategy of unlocking value from our assets in order to reinvest in our business. This sale brings several benefits, notably the opportunity to create a work environment that enhances collaboration for our Montreal-based employees, most of whom will be brought together in one main location,” said Neil Bruce, president and CEO.
Bruce continued, “SNC-Lavalin is here to stay. Our long-term lease demonstrates our commitment to Montreal and to Quebec. We have been an integral part of Montreal’s fabric for over a century, and will continue our growth from our downtown Montreal headquarters for years to come.”
The company announced in November 2016 that it was looking for a buyer for its headquarters and to consolidate its seven locations across Montreal, an initiative aimed at driving down costs.