Hudson’s Bay Adds Equity Partners on JV
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The 83-property JV includes 42 US stores,including the flagship Saks in Beverly Hills.
ORONTO and NEW YORK CITY—Hudson’s Bay Co. has sold US$533 million of equity interests in HBS Global Properties, the joint venture it formed with Simon Property Group this past February that is now valued at US$4.5 billion. HBC plans to use proceeds from the equity sale, along with cash on hand, to reduce its outstanding term loan B borrowings from US$1.085 billion to US$500 million.
The JV’s three new equity partners include Ivanhoé Cambridge, which has come in with US$250 million;Madison International Realty with US$150 million; and a large US pension fund with US$133 million. As part of the transactions, Ivanhoé Cambridge will be granted representation on the board of directors of HBS Global Properties, raising the total number of board seats from four to five…
