HBC sells Lord & Taylor flagship store in NYC to WeWork for $1B
The Hudson’s Bay Company has struck a understanding to sell Lord Taylor’s flagship store in New York to office-sharing association WeWork, that will pierce into some space in a retailer’s other properties.
The understanding will see HBC continue to run a store in a plcae on 5th Avenue until a finish of subsequent year, during that indicate it will be converted into WeWork’s new headquarters, and a smaller Lord Taylor store.
WeWork will also take adult space in Bay locations on Queen Street in Toronto, Granville Street in Vancouver and Galeria Kaufhof in Frankfurt.
“This is a transformative partnership that rethinks how retailers emanate sparkling environments and precedence reduction prolific space, while almost improving a value proposition,” HBC’s halt CEO, Richard Baker, pronounced in a statement.
HBC had been underneath vigour from an romantic shareholder to monetize a genuine estate assets, that by some estimates are value some-more than a whole company. The understanding has a cost tab of only over $1.075 billion Canadian.
As partial of a deal, financing organisation Rhône Capital, that has worked with We Work in a past on genuine estate deals, will make a $632-million equity investment in HBC, to assistance seaside adult a retailer’s change sheet.
HBC says it will use deduction of a transaction to compensate down adult to $1.6 billion in debt.
Article source: http://www.cbc.ca/news/business/hbc-wework-deal-1.4368660?cmp=rss