First Saks Store to Open in Canada; C$650 Million Deal
Hudson's Bay Company has sold its flagship retail complex and an office tower in downtown Toronto for 650 million Canadian dollars ($588.7 million).
Hudson will leaseback the entire retail and office complex for a minimum 25 years from the buyer, Cadillac Fairview Corporation, a unit of the Ontario Teachers' Pension Fund. The company plans to open a full-line, multi-level Saks store covering approximately 150,000 square feet at the location. It will be the first Saks store in Canada, scheduled to open in the fall of 2015 and will be co-located with the current Hudson's Bay store, according to the announcement.
"This sale-leaseback provides HBC with resources to deleverage and accelerate investment in our growth initiatives," Richard Baker, HBC's chief executive, said in a statement. "We continue to explore other options to create additional value through the power and potential of our real estate assets."
The company will use proceeds from the sale to reduce debt and invest and growth initiatives. Hudson plans to open another Saks location in Toronto's Sherway Gardens mall.
Hudson's Bay purchased Saks Inc. last year for $2.9 billion, including debt, according to The Wall Street Journal
. Other U.S. retailers, including Target Corp., have opened stores in Canada recently.