Bombardier Aerospace is moving production of Global 5000s, 6000s, and 7000s from its current Toronto Downsview Airport facility to a new complex at Toronto Pearson Airport in 2021, the company announced today.

It is selling its Toronto Downsview facility—where it also manufactures Q400 regional turboprops—to the Public Sector Pension Investment Board (PSP Investments) for about $635 million, Alain Bellemare, president and CEO of  Bombardier Inc., told analysts this morning during an investor conference call. In tandem, Bombardier signed a long-term lease with the Greater Toronto Airports Authority (GTAA) for a 38-acre site at Toronto Pearson International Airport, where it will open a new center of excellence and final assembly plant for its Global business jet family.

The Downsview transaction with PSP Investments is expected to close in the second quarter. However, under a lease agreement with PSP Investments, Bombardier will continue to operate from Downsview for up to three more years, with two optional one-year extension periods. Bombardier has not yet announced where, or when, it will relocate Q400 production.

“As part of Bombardier’s five-year turnaround plan, we have been reviewing our facilities worldwide to ensure we have the most efficient and cost-effective operations necessary to support our growth objectives,” said Bellemare. “Today, we use only about 10 percent of a 370-acre site at Downsview and bear the entire cost of operating a 7,000-foot runway. So, we are very pleased to have reached agreements with PSP Investments and the GTAA. Together, they allow us to monetize an underutilized asset, further streamline and optimize our business aircraft operations, and support further economic development and job growth in Toronto.”