RioCan REIT is seeking to acquire full ownership of two Ontario malls held in its joint-venture with the Hudson’s Bay Company.

Court-appointed monitor FTI Consulting reported that RioCan has agreed to purchase the Bay’s 50% interests in the Georgian Mall in Barrie, Ont., and Oakville Place in Oakville, Ont. Financial terms were not disclosed.

RioCan pushed the joint-venture into receivership in the spring.

Pending court approval and deal completion, RioCan would gain full ownership of the two malls, where the REIT already holds 50% stakes and serves as the managing partner. The buyout offer is proceeding as a stalking-horse bid during a 60-day go-shop period that allows for other bids.

RioCan has also negotiated proposed deals covering another former leased Bay stores in Ontario and Quebec. The REIT has agreed to sublease premises Toronto’s Yorkdale Shopping Centre to clothing retailer Fairweather, which intends to open a Les Ailes De La Mode location.

RioCan also agreed to surrender two Bay leases of former Bay spaces in Quebec to Cadillac Fairview, which owns the malls. The leases involve Les Promenades mall in Montreal suburbs St. Bruno, Que., and Carrefour Laval shopping centre in Laval, Que.

In addition, the REIT agreed to extend a Bay-related mortgage.

The fate of the joint-venture’s iconic Bay store in Downtown Montreal remains uncertain.

The now-defunct Bay chain is proceeding through creditor protection as it winds down its 350-year-old business. All Bay stores closed June 1.

Pictured: Former Bay store in Downtown Montreal

Photo: Shutterstock