TORONTO—Bombardier Inc. has signed a deal to sell its Downsview aircraft assembly plant in Toronto for US$635 million to the Public Sector Pension Investment Board, the company said in a statement last week. Under a lease agreement, Bombardier will continue to operate from the Downsview assembly site for up to 3 years following the closing of the deal, with two optional 1-year extension periods.

Bombardier announced that it has also signed an agreement with the Greater Toronto Airports Authority for a long-term lease of a property at Pearson International Airport where it plans a new final assembly plant for its global business jets.

The company made the announcements as it reported its latest financial results. The Downsview transaction is expected to close in the second quarter of this year, increasing cash by more than US$550 million after costs.