The FTQ Real Estate Solidarity Fund has just sold half of the stakes in the Molson project previously held by the Sélection Group, in financial recovery, to its partner Montoni. Details of the transaction have not been disclosed.
From now on, the Fonds FTQ and Montoni are 50-50 partners in the transformation of this strategic land of 102,200 square meters near downtown Montreal.
On August 30, Fondsimmobilier FTQ purchased Sélection’s interests in the project. The latter then held approximately 40% of the project, Fonds FTQ and Montoni, 30% each. Four proposals were received for Selection’s interest in the Brewers District. Two were selected to move on to the next stage. The auction was held on July 26. It is unclear the price paid by the real estate arm of the Fund to acquire Sélection’s interest.
Despite Sélection’s setbacks, the real estate arm of Fonds FTQ is staying the course. “Quite frankly, the situation at Sélection is not pleasant,” admits Martin Raymond, CEO of the Fondsimmobilier de solidarité FTQ, in an interview. Sélection was an impact player in Quebec [which resulted in] suppliers and tenants suffering the impacts of its financial problems. This creates distractions that are not desirable for a project. »
“We are proud to be part of Molson’s history, the past that will meet the future. It is a project that will be dominant in Quebec and Montreal due to its image and its impact on citizens. We can’t wait for what’s next,” says the CEO who took office on June 19. He replaces Normand Bélanger.
Thus, Mr. Raymond ensures that the real estate arm of the Fund has not lost money following the financial disappointment of its partner Sélection. “Surely this project will be profitable for our shareholders, I can promise you that. »
The Fund forms partnerships with developers by taking a stake in the equity of the projects. The collapse of Sélection does not change anything in its business model, maintains Mr. Raymond. The Fund relies on a diversity of partners, numbering around fifty, products to be built and on geographical diversity to reduce risks.
A major project, the redevelopment of the Molson district is expected to take 10 years. Work on the first phase, which consists of fitting out offices, is expected to begin at the end of 2023 or early 2024. Delivery is expected in 2025.
The total investment has not been publicly announced.
The site offers the possibility of constructing almost 560,000 square meters (m2) of buildings. In addition to the 5,000 housing units planned, there is talk of building local businesses totaling 18,500 mm², tourist attractions including a museum and brewery experience, a riverside park and a school.
Molson got $126 million in 2019 for its old brewery. “At this price,” we wrote at the time, “the consortium of buyers gets their hands on the land “as is.” The demolition of existing buildings and decontamination of land are at the buyers’ expense. »
Also in 2019, the site of the former factory was the subject of an agreement between the owners at the time and the City of Montreal for the integration of a park, the transfer of land to the Company of housing and development of Montreal for the creation of affordable housing, and the creation of an economic center and a civic center.
Despite appearances, work to dismantle beer silos has been undertaken since 2022, as well as work to strip the interior of buildings. This portion of the site will be the location of the future Montreal offices of Molson Coors, the Molson Family Foundation as well as a public place.