Morgan Stanley close to selling the Montreal Gateway Terminals to Fiera Axium

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Morgan Stanley close to selling the Montreal Gateway Terminals to Fiera Axium

Morgan Stanley Infrastructure expects to sell soon the Montreal Gateway Terminals Partnership (MGT) to a group led by Fiera Axium Infrastructure Canada.

The transaction value is estimated at CAD$650 million (US$520 million) and it is is undergoing a competition review by the government of Canada.

According to sources, the deal, which broke off late last year, has brought back on track after a 10 year extension was granted on the 25-year contract MGT has at the port.

The port has three international container terminals. Montreal Gateway Terminals Partnership operates two of the terminals and Termont Montreal Inc. operates the other. Empire Stevedoring Co. Ltd. operates a terminal that handles domestic containers.

Strategically situated at the gateway to the North American markets, MGT is in operation year-around. Gateway Terminals are serviced by both Canadian Pacific and Canadian National railways which have direct links to major American railroads. This strategic location is also connected to the network of highways that lead directly to markets in Quebec, Ontario, Western Canada as well as the United States.

On 22 February 2007, Morgan Stanley Infrastructure Partners announced that it had entered into an agreement to acquire an 80% interest in Montreal Gateway Terminals for US$400 million from Germany's TUI, a leading tourism and shipping group. In 2013, it bought the remaining 20% stake from Hapag-Lloyd AG, TUI's container shipping unit.

We have recently reported that Morgan Stanley Infrastructure Partners has plans to sell Southern Star Central Corporation, a Kentucky-based natural gas transmission system operator with about 6,000 miles of natural gas transmission pipeline in the Midwest and Mid-Continent regions of the USA. The transaction value is estimated at US$1.5 billion.

Fiera Axium Infrastructure is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Its management team comprises infrastructure investment specialists with decades of combined experience acquiring, developing, financing, operating and managing infrastructure assets. The investment philosophy of the firm is oriented toward the long term ownership of assets.

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