Hudson Bay Store TorontoToronto Hudson Bay Store
Exclusive: Hudson's Bay, RioCan agrees to divest Vancouver Store for approximately C$675 million - Quelle
A purchaser who holds a tightly-knit property firm tries to secure bridging finance from at least one of Canada's lenders, the individual who refused when the transaction was not yet published. Rio Can and Hudson's Bay, which own the Saks Fifth Avenue and Lord & Taylor brand names, said in October that they were investigating the divestiture of the business.
Hudson's Bay will rent back the room in the real estate and keep the shop running, they then said. Rio Can did not immediately react to a demand for comments. The HBC stock even increased by 4.3 per cent and was traded 2.2 per cent to C$ 9.07 at 10:10 ET (1410 GMT).
Rio Can stocks increased by 0.4 per cent to C$23.47, while the Toronto equity benchmarks increased by 0.7 per cent. It continues HBC's effort to capitalize on its extensive property portfolios as it fights an industry-wide downturn in the retailing sector and is under increasing shareholder pressures to raise its equity prices. This is followed by the $850 million divestment of the Lord & Taylor flagstore on Fifth Avenue in New York to WeWork Companies Inc last year.
Hudson's Bay stocks have depreciated by two-thirds in the last three years. Prior to the Lord & Taylor store being sold, the firm rated its properties at $35 per common share. Over the same timeframe, Rio Can stocks fell by 21 per cent, up 2.4 per cent on the Toronto benchmarks.
The RioCan Group is also changing its policy by refining shopping centers in Canada's main towns and creating more condominiums and rentals to meet the growing residential market. HBC's and RioCan now own Hudson's Bay Shops in Montreal, Calgary and Ottawa, among others, and a 50 per cent stake in Oakville Place and Georgian Mall in the Ontario area.
JV was held by 88.1 per cent of HBC and the remainder by RioCan, but its conditions justify RioCan to 20 per cent of sales revenue, the individual said in October. The sales were settled by CBRE and Brookfield Financial Real Estate Group.