HBC to sell flagship store to Cadillac Fairview in $650 mln deal
Canadian department store operator Hudson's Bay Co (TSX: HBC) has agreed to sell its downtown Toronto flagship retail complex and the Simpson’s Tower located at 401 Bay Street to Cadillac Fairview Corp Ltd for $650 million. HBC will lease the retail and office complex back for a base term of 25 years with renewal options for a term of just under 50 years. Proceeds of the deal, which is expected to close next month, will be used to reduce the company’s debt and invest in growth initiatives. HBC also announced plans to open its first Saks Fifth Avenue stores at Toronto Eaton Centre and Sherway Gardens. A portfolio company of U.S. private equity firm NRDC Equity Partners, HBC bought luxury retailer Saks in Nov. 2013 for around US$2.9 billion.
27 January 2014•6 mins read
