Ivanhoé Cambridge and Sears Canada to sell Kildonan Place to H&R REIT
Ivanhoé Cambridge and Sears Canada Inc. (TSX: SCC) have agreed to Kildonan Place, a shopping centre located in Winnipeg to H&R Real Estate Investment Trust for total pre-tax consideration of $138.5 million, with $110.8 million being Ivanhoé Cambridge’s share (80%) and $27.7 million being Sears Canada’s share (20%).
The transaction is expected to close on September 17, 2014.
H&R Real Estate Investment Trust intends to assign an undivided 50% interest to Montez Income Properties Corporation prior to closing. Primaris Retail REIT, a wholly-owned subsidiary of H&R REIT, will manage the property.
“The freed-up capital from this transaction will allow us to strengthen our Canadian retail portfolio, including our Mills and Outlet Collection retail development projects across the country,” commented Arthur Lloyd, Ivanhoé Cambridge’s EVP of Global Investments.
“Sears will continue to operate its department store at Kildonan Place,” said Douglas C. Campbell, President & CEO of Sears Canada. “This transaction will have no effect on associates employed at the store, or on the operation of the store which will continue to serve the residents of Winnipeg and surrounding area as it has proudly done for nearly 35 years since its opening in 1980.”
Photo by Ccyyrree