Hudson’s Bay Co.’s real estate joint venture is considering selling the Hudson’s Bay flagship in Vancouver, Canada.

The site is part of the joint venture formed between HBC and the RioCan Real Estate Investment Trust. HBC has hired CBRE and Brookfield Financial Real Estate Group to explore the possible sale of the Vancouver property located at 674 Granville Street. The Hudson’s Bay store has a long term lease there and has recently undergone renovations.

Additionally, the joint venture expects to close on a $200 million mortgage on the same property, the proceeds of which would be distributed on a pro-rata basis to the joint venture partners. The mortgage is expected to be for a term of four years at a rate of prime plus 1 percent and has no prepayment penalty in the event of a sale of the property. BMO Capital Markets Real Estate Inc. is acting as the exclusive advisor on this financing.

The news follows last week deal by HBC to sell the Lord & Taylor flagship on Fifth Avenue in Manhattan to WeWork, the office sharing company, for $850 million. The 650,000-square-foot Lord & Taylor flagship will continue in the entire building through the 2018 holiday season and be downsized to 150,000 square feet. The site will serve as the New York headquarters for WeWork. That deal was designed to help HBC pay off debt, improve the balance sheet and increase shareholder value.

“We are exploring a sale of this flagship property as the Vancouver real estate market has appreciated significantly over the past several years. While no decision to sell has been made, we continue to explore opportunistic transactions to enhance shareholder value,” stated Richard Baker, HBC’s governor, executive chairman and interim chief executive officer. “We are committed to operating our Hudson’s Bay store at this location and any possible sale would include the continued operation of Hudson’s Bay at this property.”

The RioCan-HBC joint venture owns or controls ten flagship properties in major cities across Canada, including Vancouver, Calgary, Ottawa, and Montreal, as well as a 50 percent interest in Oakville Place and Georgian Mall. Formed in 2015, the joint venture has a mandate to explore future acquisitions that would grow and diversify its real estate portfolio. As of June 30, 2017, the joint venture was owned 88.1 percent by HBC and 11.9 percent by RioCan.

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