HBC to close $200m mortgage, consider sale of Vancouver flagship

Tuesday, October 31st, 2017

Steve Randall
Canadian Real Estate Wealth

Hudson’s Bay Co (HBC) is considering the sale of its flagship Vancouver store at 674 Granville Street.

The company said Monday that its joint venture with RioCan Real Estate Investment Trust has appointed CBRE and Brookfield Financial Real Estate Group to investigate a potential sale.

“We are exploring a sale of this flagship property as the Vancouver real estate market has appreciated significantly over the past several years,” said Richard Baker, HBC’s Governor, Executive Chairman and interim Chief Executive Officer.

He added that no decision has been made and that the retailer would continue to operate from the building as part of any deal.

Additionally, the joint venture is set to close a $200 million mortgage on the building, expected to be for a term of four years at a rate of prime plus 1.0% and has no prepayment penalty in the event of a sale of the property.

BMO Capital Markets has been appointed as the sole advisor on the mortgage.

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