Done Deal: Lord & Taylor flagship sold
One of New York’s landmark retail buildings has a new owner.
Hudson’s Bay Company has closed the sale of its Lord & Taylor flagship on Manhattan’s Fifth Avenue building to WeWork Property Investors for a total transaction value of $850 million ($1.1 billion in Canadian dollars). As a part of the final deal, HBC is retaining a $125 million equity stake in the property, which will eventually serve as We Work’s (which is rebranding itself as The We Company) global headquarters.
“This transaction reinforces HBC’s ability to identify undervalued real estate investments with great potential,” said Richard Baker, HBC’s governor and executive chairman. “We continue to strengthen our retail business and unlock the value of our real estate assets.”
With the closing of the transaction, HBC has eliminated the approximately $400 million ($520 million in Canadian dollars) Lord & Taylor mortgage and has reduced borrowings under its asset-based revolving facility.
“We’ve fortified our balance sheet in short order,” Baker continued. “Since the end of fiscal 2017, we’ve paid down approximately CAD $1 billion in debt, providing us flexibility to support our business goals and advance our strategy.”
In January, New York City’s Department of Buildings approved plans to renovate the interior structures of the building, as well as a 26,000-sq.-ft. addition.
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