A Hudson’s Bay Company lease in Kitchener, Ont., is among the remaining 25 that B.C. billionaire Weihong (Ruby) Liu is seeking to acquire.

Primaris REIT CEO Alex Avery told 570 NewsRadio in a statement that she wants to take over the former Bay store space at the REIT’s Conestoga Mall in the southwestern Ontario city.

The Conestoga lease is the first outside of B.C. that Liu is known to be seeking.

“It’s not surprising that Ms. Liu would want to be a tenant at the mall, as it is one of the most productive malls in the country,” Avery said in the statement to the radio station.

Liu wants to acquire 28 Hudson’s Bay Company leases altogether in B.C., Alberta and Ontario as part of her plan to launch a new department-store chain bearing the name Ruby Liu.

She has already secured three leases covering former Bay locations at malls that she owns in Tsawwassen, B.C.; Victoria, B.C.; and Nanaimo, B.C. But landlords will likely have to approve her deal with Hudson’s Bay Company to purchase the remaining 25 leases.

Avery indicated to 570 NewsRadio that Primaris has not made a decision on Liu’s proposed acquisition of the Kitchener lease, because several questions remain unanswered. He noted that many retailers want to open stores at Conestoga and several existing tenants wish to expand their spaces.

He told the radio station that each proposed retailer concept is evaluated based on “the potential overlap with other existing retailers; the retailer’s track record and experience; the success of that retailer concept at other locations; the financial strength of the prospective tenant; and the detailed business plan provided through the leasing process.”

As the Hudson’s Bay Company proceeds through the creditor-protection process, Liu faces opposition from 23 of the 25 landlords at malls where she is seeking to acquire leases, according to court-appointed monitor Alvarez & Marsal. The 23 landlords have served notice that they will not approve the leases and will oppose court action forcing their sale to Liu.

The landlords contend that Liu lacks the experience and expertise to run a large chain like the one she is proposing. They have also asserted that she has failed to provide sufficient details on her plans and her financial projections are unrealistic.

She has contended that the landlords want to block the sales in order to reclaim the leases and control of the spaces. Originally signed by the Bay decades ago, the long-term deals contain highly favourable terms and renewal options with rental rates well below modern values.

Many tenants in malls containing former Bay stores are paying much higher rents, commercial real estate experts previously told Connect. If they reclaim the leases, the opposing landlords could also redevelop the spaces as mixed-use assets similar to ones being developed at many aging malls across Canada.

Primaris has gained control of five Bay leases after they were disclaimed as part of the company’s creditor-protection process.

Primaris plans to invest $50 million to $60 million redevelop the five sites, reducing the gross leasable area to 475,000 square feet.

Four other Hudson’s Baby Company leases at Primaris malls are subject to bids, including the one at Conestoga Mall. It was known that a prospective retailer had bid on the lease but Liu was not previously identified as the bidder.

Primaris believes it will have substantial influence over the outcome due to deferred maintenance and the investment required to restore the properties.

Pictured: The since-closed Hudson’s Bay Company store at Conestoga Mall in Kitchener, Ont.

Photo: Shutterstock