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Sears Canada to offload retail assets

RBR Staff Writer Published 17 June 2013

Sears Canada, a department store chain, is set to offload three retail assets in the country after it entered into three agreements totaling a value of C$192m ($188.7m).

The retailer has agreed to sell its two retail outlets at Yorkdale Shopping Center in Toronto and at Square One Shopping Center in Mississauga for C$191m ($187.7m).

The arrangement is made with co-owners of the shopping centers, Oxford Properties Group and Alberta Investment Management Corporation.

Sears has also agreed to sell an option relating to a third store located at Scarborough Town Center to the Co-Owners for financial consideration of C$1m ($982,801). The co-owners have five years to exercise the option on this property at a fixed total cost of C$53m ($52m).

Commenting on the developments, Sears Canada president and CEO Calvin McDonald noted that the sale of the assets is part of thecompany's strategy to create total business value.

"While opportunities like this are presented to us occasionally, our primary focus of creating long-term value for the Company is best approached by implementing our three-year transformation," added McDonald.

"We appreciate the commitment and dedication that our associates in the two stores have demonstrated, and look forward to finding new homes for them within the Sears family."

All the agreements are expected to be concluded by 24 June 2013, with stores sold in Toronto and Mississauga scheduled for closure by 31 March 2014.