Montreal — Bombardier’s drive to bolster its cash reserves is getting a lift from the booming real estate market in Canada’s biggest city. The maker of planes and trains agreed to sell its Downsview factory in Toronto to Canada’s Public Sector Pension Investment Board for about $635m. The transaction is expected to close in the second quarter, increasing cash by more than $550m after costs, Bombardier said on Thursday as it reported earnings. The land deal buoys CEO Alain Bellemare’s goal of fortifying Bombardier’s balance sheet, saddled with about $9bn debt from pricey development programmes for the C Series airliner and the Global 7000 business jet. Bombardier raised C$638.4m ($497m) in a share offering in March, taking advantage of 2018’s biggest stock gain among Canadian industrial companies. The Downsview sale "further improves Bombardier’s liquidity position", Kevin Chiang, a CIBC World Markets analyst, said. "We continue to see the company execute against its long-term strate...
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