HUDSON’S BAY SELLS ADDITIONAL $50 MILLION OF EQUITY TO MADISON INTERNATIONAL

Hudson’s Bay Company has sold an additional $50 million of its equity in HBS Global Properties, HBC’s real estate joint venture with Simon Property Group, to Madison International Realty. Proceeds from the sale will be used to reduce the company’s borrowings on its revolving credit facility.

This equity sale follows the company’s announcement on November 17, 2015 that it sold $533 million of equity in HBS Global Properties. The total combined third party investment of $583 million values HBS Global Properties’ real estate portfolio at $4.5 billion based on a blended capitalization rate of 5.9 percent. Madison International Realty has now made a total equity investment of $200 million.

HBC will retain an approximate 61 percent ownership interest in HBS Global Properties as a result of this transaction and following the contribution of Simon Property Group’s $100 million commitment for tenant improvements.