Hudson’s Bay Company, which has 90 locations, two outlet stores, thebay.com and is the parent company of Saks 5th Avenue and Lord & Taylor, is forming two joint ventures valued at $4 billion to bring more value to its property portfolio.
The company has entered into agreements with Simon Property Group Inc. and RioCan Real Estate Investment Trust. These joint ventures will enable them to build on the strength of its existing real estate assets and identify new real estate growth opportunities.
The transactions position HBC’s retail business for continued growth, the company said, while providing increased financial flexibility. The approximately $1.1 billion in expected cash proceeds from the joint venture transactions, net of expenses, will be used to reduce debt on HBC’s balance sheet, the company said.
“I am truly excited by these partnerships and what they mean for the future of HBC,” said Jerry Storch, CEO, Hudson’s Bay Company. “A stronger balance sheet and enhanced financial position will enable us to invest in growth initiatives across our retail business, including strengthening the connection between our store and digital businesses, expanding our off-price channel and investing in our world-class store base.”
Source: Retailing Today
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