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Hudson's Bay to divest Toronto properties for $587.09m

RBR Staff Writer Published 28 January 2014

Department store operator Hudson's Bay (HBC) has outlined plans to divest its Toronto properties to commercial real estate heavyweight Cadillac Fairview for C$650m ($587.09m).

Hudson's Bay Toronto properties to be sold include: a flagship downtown Toronto store and neighboring office tower. The retailer intends to open a full-line Saks store in the leased-back space.

The retailer, which bought US luxury chain Saks Inc for $2.4bn in 2013, said it will use the proceeds from the sale of its downtown Toronto retail complex and neighboring Simpson's Tower to reduce debt and invest in growth initiatives.

Hudson's Bay chief executive officer Richard Baker said, "We continue to explore other options to create additional value through the power and potential of our real estate assets."

Founded in 1670, Hudson's Bay is North America's longest continually operated company.

In Canada, HBC operates Hudson's Bay, Canada's largest department store with 90 full-line locations and one outlet store as well as thebay.com. HBC also operates Home Outfitters, Canada's largest home specialty superstore with 69 outlets across the country.

In the US, HBC operates Saks Fifth Avenue, which comprises 41 full-line stores in 22 states, five international licensed stores, saks.com, 72 Saks Fifth Avenue OFF 5TH stores and saksoff5th.com.

HBC also operates Lord & Taylor, a department store chain with 49 full-line store locations throughout the northeastern US, in two major cities in the Midwest and in Boca Raton, Florida, four Lord & Taylor outlet locations, and lordandtaylor.com.