Sears Canada enters Calgary North Hill development agreement

Toronto - Sears Canada Inc. has entered into a binding agreement with Concord Pacific Group of Companies to pursue the development of the 12-acre Sears site located at the North Hill Shopping Center in Calgary, Alberta. Closing under the agreement is conditional upon satisfaction of conditions such as site investigations and obtaining the approval from the city of Calgary for the project, which are expected to take some time.  

Sears Canada plans an infill project consisting of residential high-rises, with a potential retail component. The arrangement contemplates the sale of a 50% interest in the site for a value of approximately $15 million, to Concord, following which the parties would enter into a co-ownership joint arrangement. If third-party debt financing cannot be obtained, Concord, and not Sears, will be responsible for providing debt financing to develop the project. Sears Canada said the project may not be completed based upon a multitude of internal and external factors.

"Sears has been part of the Calgary landscape since 1958 and we are excited about the possibilities for the North Hill site as conceptualized by Concord and Sears," said Doug Campbell, president and CEO, Sears Canada Inc. "We plan to continue operating our store at North Hill as we have for almost six decades and seeing this new development adding positively to the landscape and economy of Calgary. We look forward to working together with Concord and moving the project forward."

Recommended stories

Login or Register to post a comment.