The Toronto Stock Exchange has approved Hudson’s Bay Co.’s application for Rhone Capital’s $500 million equity investment in the form of eight-year mandatory convertible preferred shares. The approval is subject to customary deliverables on or before transaction closing. The deal means Rhone will have a minority interest — 21.8 percent — in HBC.

Two weeks ago, HBC announced a series of strategic transactions with Rhone Capital, WeWork Companies and its WeWork Property Advisors affiliate, which is a joint between WeWork and Rhône. The transactions include selling the 650,000-square-foot Lord & Taylor flagship in Manhattan to WeWork for $850 million and leasing back 150,000 square feet to create a smaller flagship as well as the equity deal. The L&T site will serve as the New York headquarters for WeWork.

HBC will also lease space at some of its other flagships to WeWork to further monetize its real estate, raise shareholder value, lower debt and improve the balance sheet.


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