Cadillac Fairview, the real estate subsidiary of Ontario Teachers’ Pension Plan, has agreed to purchase two properties from Hudson’s Bay Company (HBC) for $650 million.
HBC will sell its downtown Toronto flagship retail store at Queen and Yonge streets and the Simpson Tower located at 401 Bay Street. It will lease the entire retail and office complex back for 25 years with renewal options for a term just under 50 years.
The transactions are subject to customary conditions and are expected to close on or about Feb. 25, 2014.
The retailer will also open up a Saks store that will be co-located within the current Hudson’s Bay store in the fall of 2015.
“We are excited to be the first to bring Saks to the Canadian market as part of this iconic property in the heart of downtown Toronto,” says John Sullivan, president and CEO of Cadillac Fairview.
As part of this transaction, Saks has also agreed to lease space in Toronto’s Sherway Gardens, which is owned by Cadillac Fairview.
Teachers’ helped finance HBC’s acquisition of Saks last year.
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