Homburg builds two office towers above CN Station

Halifax property developer Richard Homburg said yesterday he plans to build two $150- million 24-storey office towers to maximize the potential of the CN Central Station complex he bought last year for $355 million.

Homburg, CEO of Homburg Invest Inc., was in Montreal to launch the $35-million Phase II of the 333 Sherbrooke St. E. luxury condominium project and lifted the veil slightly on plans for Central Station’s long-term future.

Homburg Invest’s commitment to Montreal has now risen to more than $1 billion over the past three years. It includes the $485-million acquisition of Alexis Nihon Plaza and two-thirds ownership of the historic Château Viger site in partnership with the de Gaspé Beaubien family.

Central Station, where Canadian National Railway Co. took back its 17-storey headquarters tower on a long-term lease, has an excellent location and development potential, said Homburg, both for retail and future office space. “We’re talking with several companies and we’d probably start with one tower.”

Construction of a direct rail link between downtown and Pierre Elliott Trudeau International Airport at Dorval, now being planned seriously, will make Central Station’s location even more important, he added.

Phase I of 333 Sherbrooke E., which has helped to transform the landmark artery in the St. Denis St. and Plateau areas, is sold out and advance sales to buyers from Europe and the United States as well as Canada ensure success with the 67-unit Phase II, Homburg said.

A one-bedroom condo is priced around $350,000 and three-bedroom and top-level units are up to $2 million. Also, 30 townhouses will be built at the rear.

Alexis Nihon’s retail space is doing well and will get an upgrade, he added, while the $400- million Viger station redevelopment, also being done with the de Gaspé Beaubiens, is moving steadily through the permitting process.

A recent report by the Office de consultation publique de Montréal said it was worthwhile and would rejuvenate the Faubourg Québec area, but could upset the neighbourhood’s equilibrium. Viger would become a modern 250-room hotel and shopping centre. A massive underground parking area has stirred controversy.

Later, Homburg told the Montreal Real Estate Forum that Montreal property values lag

seriously behind the rest of Canada and this heightens the potential of a city with competitive business costs, a major container port, a rail transportation hub, fast-growing aerospace and high-tech industries and a strong tourism sector.

“The Montreal office market is on fire and downtown core vacancy rates have fallen sharply with little new space on the horizon,” he said. “We see net rental rates responding accordingly while the condo market will continue to flourish for several more years.”

Along with ownership of the Centre Laval and Spheretech, Homburg now holds 4.2 million square feet of prime retail and commercial properties in the greater Montreal area.

Source: Montreal Gazette