Hudson’s Bay and RioCan Close Two Tranches of Real Estate Joint Venture Valued at $1.9 Billion
|Areas||Commercial Real Estate, Corporate and Commercial, Corporate Finance and Securities, REITs and Income Securities, Tax|
Goodmans represented RioCan Real Estate Investment Trust (“RioCan”) in connection with the completion of two tranches of its real estate joint venture with Hudson's Bay ("HBC") for $1.9 billion.
On July 9, 2015, HBC completed the first tranche of its real estate joint venture transaction with RioCan (the “RioCan-HBC JV”). On closing, the new joint venture acquired a total of 9 retail properties from HBC and RioCan valued at $1.6 billion and closed a $360 million credit facility from a Canadian banking syndicate.
On November 25, 2015, HBC and RioCan closed the second tranche of their joint venture in which HBC contributed three ground-leased retail properties valued at approximately $379 million. RioCan has committed to contribute, by July 9, 2018, a total of $325 million to the RioCan-HBC JV for an eventual stake of approximately 20%. The joint venture which is focused on real estate growth opportunities in Canada will enable HBC and RioCan to build on the strength of existing real estate assets and identify new real estate growth opportunities.