- What Leases for dozens of Hudson’s Bay stores could have new owners
- Why The interested parties intend to repurpose the locations
- What next The acquisitions require court approval
A Vancouver-based mall operator that has bid for control of dozens of Hudson’s Bay store leases is pledging to establish a new Canadian department-store chain from the locations.
Ruby Liu Commercial Investment has entered into a definitive agreement with Hudson’s Bay to acquire the leases as part of an ongoing court-ordered liquidation of the bankrupt retailer’s remaining assets. The deal is subject to court approval. The company is controlled indirectly by Vancouver billionaire Ruby Weihong Liu, the owner of Central Walk, a British Columbia-based investment firm that owns and operates three shopping plazas as well as a golf course in the province.
A decision on Liu’s bid is expected to be handed down by the Ontario Superior Court of Justice near the end of the week. If approved, Liu would take over the leases for as many as 28 undisclosed Hudson’s Bay locations in British Columbia, Alberta and Ontario that are scheduled to close by the end of the month.
Liu has expressed the desire to establish a “new modern department store concept” that would serve the Canadian market, according to court filings. She also could sublease retail space to individual retailers.
“From what I understand, she’s looking to create sort of a concept that I see as almost a mall within a mall – a micro-mall,” Toronto-based retail analyst Bruce Winder told Green Street News. “A fusion of food, shopping and entertainment.”
Central Walk’s existing mall locations have plenty of experiential attractions catering to all ages, from arcades to free dance lessons and fashion shows. Winder expects Liu – who got her start developing a large mall property in Shenzhen, China, that eventually sold for approximately $1.3bn – will import those ideas if the lease bids are approved.
“The malls out west are very lively,” he said. “There’s a lot going on there, just all kinds of events.”
Five Hudson’s Bay leases within a portfolio belonging to Primaris Real Estate Investment Trust received no bids. The REIT announced on Monday that it will assume control of all five leases. The stores are in Kingston, Ont., Orléans, Ont., Calgary, Medicine Hat, Alta., and Québec City, and comprise a total of 532,000 sq ft.
Primaris is one of the country’s largest mall operators. While the investment trust expects to realize a $5.5m hit to its annual revenues as a result of Hudson’s Bay vacating the locations, it plans to spend upward of $60m on a redevelopment plan for their possible future uses.
Primaris also expressed interest in four other Hudson’s Bay locations belonging to its portfolio – two of them in Ontario and another two in Alberta. Those locations also have received interest from undisclosed bidders.
