Shopping Centers Today International

JAN 2016

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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T H E C O M M O N A R E A 8 S C T / J A N U A R Y 2 0 1 6 Toronto-based retail conglomerate Hudson's Bay Co. (HBC) sold a $533 million stake in its joint venture with U.S. landlord Simon to a trio of investors: Ivanhoé Cambridge, Madison In- ternational Realty and a large U.S. pension fund. HBS Global Properties, as the venture is known, owns an international property portfolio of 83 marquee retail locations across the U.S. and Ger- many, including flagship department stores in Beverly Hills, Calif.; the greater New York area; Berlin, Cologne, Dus- seldorf, and Frankfurt, as well as properties in other metropolitan and suburban centers.The venture's mission is, in part, to "expand and diversify" the value of this real estate. The deal values HBS Global Prop- erties' portfolio at $4.5 billion, based on a capi- talization rate of 5.9 per- cent. Ivanhoé Cambridge is paying $250 million; Madison International is paying $150 million, and the U.S. pension fund is paying $133 million. HBC will retain an approximate 63 percent ownership interest in HBS Global Properties as a result of this trans- action and following Simon's recent commit- ment of $100 million to the venture for tenant improvements. As part of the transac- tions, Ivanhoé Cam- bridge will be granted representation on the board of directors of HBS Global Properties, raising the total number of board seats from four to five. Deal values Hudson's Bay store portfolio at $4.5 billion ICSC signed a partnership agreement with the Polish Council of Shopping Centers, providing the latter's roughly 200 member companies with ac- cess to ICSC's education, advocacy, research and networking activities. The agreement was signed at MAPIC, which was held in Cannes, France. "We al- ready shared similar values and duties for our industry," said Patrick Delcol, president of the Polish Council of Shopping Centers. "We will now enable an easier integration and participation of our members and organizations to the wider international retail real estate platform of ICSC." Similar agreements have been signed with the Austrian, British, French, German, Italian, Nor- dic, Swiss and Turkish councils. POLISH COUNCIL JOINS ICSC China's frst REIT BHG Retail REIT, China's frst re- tail property REIT, raised $281.6 million in its IPO on the Singapore stock exchange and through a separate deal with a group of Asia- based investors. "The REIT, which wants to double its portfolio, plans to buy properties and has options to develop 12 new ones," said Chan Iz-Lynn, the frm's CEO.

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