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Hudson’s Bay Company sells additional $50m of its equity in HBS Global Properties

RBR Staff Writer Published 31 March 2016

Hudson’s Bay Company has sold an additional $50m of its equity in HBS Global Properties, HBC's real estate joint venture with Simon Property Group, to Madison International Realty.

Proceeds from the sale will be used to reduce the Company's borrowings on its Revolving Credit Facility. All amounts are expressed in US dollars.

This equity sale follows the Company's announcement on November 17, 2015 that it sold $533 million of equity in HBS Global Properties. The total combined third party investment of $583 million values HBS Global Properties' real estate portfolio at $4.5 billion(1) based on a blended capitalization rate of 5.90%. Madison International Realty has now made a total equity investment of $200 million.

This transaction further demonstrates the third party endorsement of the value of HBC's real estate venture while reinforcing the high quality nature of the properties that make up HBS Global Properties' real estate portfolio. HBC will retain an approximate 61% ownership interest in HBS Global Properties as a result of this transaction and following the contribution of Simon Property Group's $100 million commitment for tenant improvements.

Source: Company Press Release