Hudson's Bay Co. Sells $533M Of Equity In Real Estate Venture

Hudson's Bay Co. , the department store company whose businesses include Saks Fifth Avenue and Lord & Taylor, said it sold $533 million worth of equity it owned in HBS Global Properties, its real estate venture with Simon Property Group, to third party investors: Ivanhoe Cambridge ($250 million investment), Madison International Realty ($150 million investment), and a large U.S. pension ($133 million). Ivanhoe Cambridge will be represented on the HBS board of directors. The proceeds will be used to pay Hudson Bay Co.'s $1.09 billion loan down to $500 million. The third-party investment puts the value of HBS Global Properties at $4.5 billion, Hudson Bay Co. said. Shares of Hudson's Bay Co. are down 18.2% for the year so far while the S&P is down 0.4%.