European property portfolios sell for €4.7b
In separate deals, two European portfolios have been sold for €4.73 billion ($5.32 billion).
Simon Property Group and Canada-based Hudson’s Bay Co. have agreed to purchase Galeria Holding — the parent company of German department store Kaufhof — for €2.83 billion ($3.18 billion).
The seller of the 135-year-old Galeria Kaufhof and its Belgian subsidiary was Metro Group. Galeria Kaufhof is the biggest department store chain in Germany and the fourth biggest in Europe.
To finance the acquisition, HBC will sell Kaufhof’s stake in at least 40 properties to its real estate joint venture with Simon. The Simon-HBC venture already owns the Saks flagship store in Beverly Hills, Calif., and Lord & Taylor’s store in Manhasset, N.Y., among others.
The Kaufhof acquisition is HBC’s first move onto European soil. As part of the plan, the Canadian retailer plans to introduce the Saks Fifth Avenue and the Saks