Hudson’s Bay Company takes out $1.25-billion mortgage on Saks Fifth Avenue’s flagship store in New York
TORONTO – Savvy real estate investor Richard Baker dipped into another prized Hudson’s Bay Co. property Monday to improve the retailer’s capital structure.
But his US$1.25-billion refinancing of its flagship Saks Fifth Avenue store in New York is just one a step of a more ambitious plan to unlock the value of the company’s real estate assets in the spring.
“By the end of [the current fourth quarter], we will publicly announce a structure for the value of our real estate,” the retailer’s chief executive said in an interview. “We think we have two obligations. One is to share with our shareholders what it is that we own — give them as much insight and as much disclosure as we can, and then let them decide whether that means anything.”
Investors warmed to the news, sending HBC’s shares in Toronto up $1.62 or 8% to $21.82 on Monday.
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