Montreal’s public-transit corporation is moving into real estate development, creating a new structure to partner with private developers on projects tied to its metro network, Le Devoir reported.

The Société de transport de Montréal (STM) has established a limited partnership, Mobilis Immobilier, to participate in real estate development at metro stations and other transit infrastructure, including plans for roughly 400 housing units at the future Césira-Parisotto station in the city’s east end.

The STM’s board has also mandated its commercial subsidiary, Transgesco, to lead efforts related to the “enhancement and development of the STM’s real estate assets,” enabling partnerships with private developers and landowners, according to Le Devoir.

One potential collaboration involves Groupe Mach, which owns adjacent land near the Lacordaire Boulevard and Jean-Talon Street site. Maha Clour told the publication that the model could be replicated across future station-area developments.

“The Lacordaire site was acquired [by the STM] for the purpose of constructing the future Césira-Parisotto station,” she told her interviewer. “Public interest demonstrates that in order to allow development, an association or partnership [with the owner of the riverfront land] was necessary. Because the land, in itself, is very small and does not develop on its own.”

The initiative follows amendments to Quebec’s Bill 61, approved in December 2024, which now allow transit agencies to undertake joint real estate development through limited partnerships. Previously, the STM would have had to wait until station construction was complete before building above entrances.

“The history of the metro network demonstrates that when a metro station is in operation, it becomes technically very complex and very risky to build on top of a station at a later stage,” Clour told Le Devoir.

The STM has identified 13 priority sites across its network that could yield about 4,000 housing units, representing an estimated $400 million in real estate value and generating $15 million to $20 million in annual recurring revenue.

The developments are expected to align with the ongoing $7.6-billion extension of the Blue Line, which will add five stations in Montreal’s east end by 2031, Le Devoir reported.