print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Products
Commercial Real Estate News

HBC Gets $151.5 Million to Clear Way for Redevelopment of Oakridge Centre in Vancouver With Offices, Park, Entertainment

Hudson's Bay to Relocate in Mall for 2023 and Get Extra $21 Million for Improvements
October 9, 2018
HBC will receive $151.5 million to amend its lease at Oakridge Centre in Vancouver.



Toronto-based HBC is amending its lease for its Hudson's Bay Co. store at Oakridge Centre in Vancouver, one of its most profitable in Canada, in exchange for $151.5 million in a move that lets it pay off debt as the mall owners consider a redevelopment with offices, residences, a park and entertainment venues.

The global retailer, with brands that include Lord & Taylor and Saks Fifth Avenue, said in exchange for "certain concessions and approvals related to the redevelopment" of the mall it will receive the lump sum, which will be used to pay down a revolving credit facility.

Vancouver-based QuadReal Property Group purchased the mall at 650 W. 41st Ave. in February 2017 from Ivanhoé Cambridge. Four months later, the group said it was teaming up with local developer Westbank on a redevelopment of the 28.5-acre site that would include a retail, office and residential component.

"We are in the process of designing an inspiring residential, shopping and business community that abides by the rezoning already approved by the city of Vancouver, and enhances the area’s multicultural character and the shopping centre's flagship status," said Remco Daal, president of QuadReal’s Canadian real estate division, in a statement at the time.

Westbank founder Ian Gillespie described the goals for the site as very large. "We are exploring everything from the future of retail to housing, to work environment, mobility, parks, entertainment, public spaces, energy production and culture in a holistic, mixed-use development," he said.

HBC officials could not be reached for comment, but the company said in a statement it agreed to relocate Hudson's Bay to a new location within the redeveloped Oakridge Centre, where it will remain a retail anchor and pay similar rent as its existing lease.

Construction of the new location is expected to be completed in 2022, at which time HBC will receive an additional $21 million to outfit the new store, which is scheduled to open in 2023.

The plan is for the current store to remain open and serve customers throughout the redevelopment.

Craig Patterson, editor of Retail Insider, said in the past department stores practically owned malls because of legacy contracts that allowed them to dictate terms of any changes.

"I'd be speculating, but that's why they were probably able to negotiate that type of payout," said Patterson, adding even after the redevelopment the Hudson's Bay store is expected to total 142,000 square feet. "I’d call that a $100 million store and one of their top five in Canada."

Garry Marr, Toronto Market Reporter  CoStar Group   
GET IN TOUCH        Contact CoStar News Team:   News@CoStar.com

 Find us on 

Welcome To CoStar's
Industry-Focused,
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News