Hudson’s Bay completed the sale of its Lord & Taylor Fifth Avenue property to WPI. Credit: Mike Mozart.

Canada-based retailer Hudson’s Bay (HBC) has completed the sale of its Lord & Taylor Fifth Avenue property in Manhattan, US, to WeWork Property Investors (WPI) for a total consideration of C$1.1bn ($850m).

The deal allowed the retailer to eliminate Lord & Taylor’s C$520m ($400m) mortgage and reduce borrowings under its asset-based revolving facility.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

HBC governor and executive chairman Richard Baker said: “This transaction reinforces HBC’s ability to identify undervalued real estate investments with great potential.

“We continue to strengthen our retail business and unlock the value of our real estate assets.”

HBC agreed to sell the Manhattan property to WeWork Cos for $850m in 2017.

Last August, HBC announced an extension to the purchase and sale agreement with an affiliate of WeWork Property Advisors (WPA) to sell the property.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
“We continue to strengthen our retail business and unlock the value of our real estate assets.”

The retailer has also noted that WPI exercised its option to convert C$163m ($125m) under the transaction value into an equity interest in the building, which was announced earlier this month. The property will now be held by HBC through a joint venture structure.

Baker added: “We’ve fortified our balance sheet in short order. Since the end of fiscal 2017, we’ve paid down approximately C$1bn ($753.7m) in debt, providing us with the flexibility to support our business goals and advance our strategy.”

Earlier this month, HBC has also completed the sale of a 50% stake in 18 properties in Germany to a subsidiary of Signa Prime Selection for C$375m ($288m).

The retailer used the transaction amount to reduce borrowings under its asset-based revolving facility.

HBC currently operates 350 stores under various formats, including luxury and premium department chains. It has more than 45,000 employees worldwide.

Brands operated by the company in North America include Saks Fifth Avenue, Hudson’s Bay, Lord & Taylor, and Saks OFF 5TH.