Hudson's Bay selling Lord & Taylor 5th Ave building for US$850m
[BRAMPTON, Canada] Canadian retailer Hudson's Bay Co said on Tuesday it would sell its Lord & Taylor Fifth Avenue building for US$850 million to SoftBank-backed WeWork amid pressure from investors to look for options for its real estate assets.
Hudson's Bay also said WeWork and private equity firm Rhone Capital would also invest US$500 million in the company.
The flagship store at the building in New York would continue operations through the 2018 holiday season after which it will be converted into WeWork's headquarters, the company said on Tuesday.
New York-based WeWork leases office space and rents it out to individuals and small companies, namely startups.
Hudson's Bay said the deal would help it reduce debt by C$1.6 billion (S$1.72 billion) and ramp up its liquidity to about C$1.1 billion.
Real estate activist investor Jonathan Litt has asked Hudson's Bay to consider going private and sell its vast real estate holdings and had previously threatened to launch a proxy fight if management did not act.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Australian budget to target housing woes with more construction workers
UK construction growth hits 14-month high in April, PMI survey shows
KKR buys 14 hotels in Japan, converts them to midscale Sheraton properties
Abu Dhabi developer Aldar picks banks for 10-year green sukuk
UK house prices stagnate in April as higher mortgage costs bite
When buying a home is treated as a national security threat