|
The company announced separate joint ventures
with two real estate investment trusts, or REITs, U.S.-based
Simon Property Group Inc <SPG.N> and Canada's RioCan Real Estate
Investment Trust.
HBC will contribute real estate assets, signing long-term leases
so it can continue to operate its stores. The REITs will invest
in the new ventures in return for equity stakes. HBC valued the
U.S. joint venture at $1.8 billion, and the Canadian venture at
C$2 billion ($1.61 billion).
The joint ventures, structured to allow for a potential initial
public offering or sale, will scout for real estate growth
opportunities in Canada and the United States.
"By partnering with industry leaders, we have created two
tremendous real estate vehicles for growth," said HBC Chief
Executive Richard Baker, in a release. "Importantly, we have
retained the flexibility to create REITs at a future date of our
choosing."
Under the agreement with RioCan, HBC will contribute 10 owned or
ground-leased properties into the new joint venture, including
its flagship properties in Vancouver, Calgary, Ottawa, and
Montreal.
A centuries-old company with roots in the fur trade, HBC owns
U.S. department store chains Lord & Taylor and Saks Fifth
Avenue, Hudson's Bay department stores in Canada, and Canadian
housewares chain Home Outfitters.
(Reporting by Euan Rocha Editing by W Simon)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
