Hudson’s Bay Company Sells $533 Million of Equity in Real Estate JV

November 19, 2015

HBC retains an approximate 63% ownership interest in HBS Global Properties, its real estate joint venture with Simon Property Group.

On November 17, Willkie client Hudson’s Bay Company (HBC) announced that it has sold a total of $533 million of its equity in HBS Global Properties, HBC’s real estate joint venture with Simon Property Group, to three third-party investors. The total $533 million investment values HBS Global Properties’ portfolio at $4.5 billion. HBC will retain an approximate 63% ownership interest in HBS Global Properties as a result of the transaction.

Earlier this year, a Willkie team advised HBC in the formation of the joint venture with Simon Property Group, a major retail real estate owner. The firm also advised HBC in its recent cross-border acquisition of Galeria Kaufhof for €2.5 billion. With the completion of the Galeria acquisition, HBC has an international retail platform comprising over 460 locations across eight leading banners in four countries. It operates the leading department store banners in Canada, Germany and Belgium, in addition to its iconic Saks Fifth Avenue, Lord & Taylor and Saks OFF 5TH in the United States. In connection with the Galeria acquisition, HBS Global Properties acquired 41 Galeria properties in a transaction valued at €2.6 billion.

The Willkie team for the current transaction was led by partners Gordon Caplan, Russell Leaf and Gregory Astrachan and included partners Henry Cohn, Hillel Jacobson, David Drewes, Peter Haller, Georg Linde and Patrick Meiisel; national partners Bettina Bokeloh and Axel Wahl; special European counsel Jasmin Dettmar; associates Michael Brandt, Timothy DeKeyser, Carly Glover Saviano, Patrick Wacker, Natalie Whitaker, Kathryn Crowe, Cindy Yellen, Elizabeth Case, Jennifer Coffey, Andreas Feith, Kathleen O’Donnell, Andrew Prodromos, Patrick Horan, Wolfgang Muenchow and Christopher Clerihew; and law clerk David Blassberger.