Fundraising

MSIP sells Montreal Gateway Terminals

Morgan Stanley Infrastructure Partners has sold its ownership of Montreal Gateway Terminals to a consortium led by Fiera Axium.

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A consortium led by Fiera Axium Infrastructure, the Canada-based fund manager, has purchased 100 percent of Montreal Gateway Terminals from Morgan Stanley Infrastructure Partners . 

The consortium comprises Fiera Axium Infrastructure II, Manulife , Fonds de solidarite FTQ, Industrial Alliance, and Desjardins Group, the latter through its insurance subsidies and pension fund .

“This investment fits well within the core infrastructure strategy as Montreal Gateway Terminals represents an essential infrastructure asset,” said Fiera Axium Infrastructure President and CEO Stephane Mailhot. “Our consortium is comprised of partners with a long-term investment horizon and vested interests in the economic development of greater Montreal, Quebec and Canada. We look forward to partnering with the Port and other key stakeholders to promote the Port of Montreal's status as an international trade hub.”

Montreal Gateway Terminals is the largest container terminal at the Port of Montreal, operating two of the port's three international terminals that are linked to 140 nations globally, according to a joint statement. The port benefits from its close proximity to European ports and connection to an extensive railway and highway network, representing 58 percent of all containers handled at the port in 2014.

Through its subsidiary MGT Holdings, MSIP acquired an 80 percent interest in Montreal Gateway Terminals in February 2007, and secured a 100 percent ownership in 2013. 

“We are proud of our accomplishments over the past seven years at Montreal Gateway Terminals,” said MSIP head of asset management John Watt. “The team worked very closely with management on many initiatives, and Montreal Gateway Terminals is today a very efficient company providing customer service at the highest quality level.”

BMO Capital Markets acted as exclusive financial advisor, book runner and underwriter for the debt financing raised in conjunction with the transaction. Norton Rose Fulbright was the consortium's legal advisor.

The terms of the sale agreement were not disclosed.