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RioCan Offering Hudson’s Bay Company $141M for Two Ontario Malls
RioCan REIT’s bid prices on two Ontario malls held by its joint-venture with the Hudson’s Bay Company have been revealed in a new court filing.
Court-appointed monitor FTI Consulting reported that RioCan has offered to pay a total of approximately $141 million for the Bay’s 50% ownership interests in the Georgian Mall in Barrie, Ont., and Oakville Place in Oakville, Ont. RioCan previously agreed to buy the Bay’s stakes, but financial terms were not disclosed.
If all goes according to plan, RioCan will pay approximately $77.6 million for Georgian Mall and about $63 million for Oakville Place.
Pending court approval and deal completion, RioCan would gain full ownership of the two malls, in which the REIT already holds 50% stakes. RioCan also serves as the malls’ managing partner. The buyout offer is proceeding as a stalking-horse bid during a 60-day marketing period for competing bids that closes October 13.
But FTI believes that the number of potential rival bidders is “narrow.”
The Bay is proceeding through creditor protection as it winds down its 350-year-old business.
Pictured: Georgian Bay Mall in Barrie, Ont.
Photo: Tourism Barrie
- ◦Lease
- ◦Sale/Acquisition
- ◦Development
