Report: Florida East Coast for sale

Unclear what impact a sale would have on Brightline passenger project
RELATED TOPICS: FLORIDA EAST COAST | FINANCING | PASSENGER
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Florida East Coast Railway’s owner is getting ready to put the regional up for sale, according to a Bloomberg News report.

Fortress Investment Group, which purchased the FEC for $3.5 billion in June 2007, has hired investment banking firms Barclays and Morgan Stanley to advise on a potential sale, Bloomberg reported, citing unnamed sources said to be familiar with the matter.

Representatives from Fortress and FEC did not immediately respond to Trains News Wire’s messages seeking comment on Thursday afternoon.

It is unclear what impact, if any, a potential sale would have on All Aboard Florida’s Brightline passenger project. All Aboard Florida, another Fortress subsidiary, was created to develop a privately funded and operated passenger service that will use FEC tracks between Miami and Cocoa, Fla., and to Orlando via a proposed new route.

After purchasing Florida East Coast Industries in 2007, Fortress split the company into two: the railway and Flagler, one of the Sunshine State’s largest commercial real estate developers.

The railway is valued at $850 million, according to the Fortress website, while Flagler’s value is pegged at $3.1 billion.
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