Contact Us
News

HBC, RioCan Close First Tranche of Real Estate JV

Placeholder

Hudson's Bay Co and RioCan REIT have closed the first tranche of a JV aimed at leveraging the strength of both companies' existing real estate assets and identifying new real estate growth opportunities. With the closing, the JV has acquired $1.6B worth of properties. HBC has contributed seven owned or ground-leased properties (including flagships in downtown Vancouver, seen above; Calgary, Ottawa and Montreal), representing 2.6M SF worth $1.3B and resulting in an 86.6% initial equity stake in the JV. RioCan has contributed a 50% interest in two mall properties, Oakville Place (below) and Georgian Mall, worth $299M.

Placeholder

RioCan says it’s committed to contribute a total of $325M to the JV for an eventual equity stake of 25%. The balance of its contributions will come from $52.5M in tenant allowances, and $125.4M to fund future property acquisitions for the JV. A dedicated management team will focus on overseeing the JV properties and growing the portfolio, and RioCan will continue acting as manager for the enclosed malls it’s contributed. As part of the second tranche of the closing process, HBC is expected to contribute additional properties at Yorkdale Shopping Centre, Scarborough Town Centre and Square One Shopping Centre.