HBC to sell remaining European real estate and divest related retail JV for $1.5b
HBC has entered into definitive agreements to sell the company’s remaining stake in its German real estate joint venture and divest its related retail joint venture to its partner, SIGNA, along with assumption of certain obligations for a total consideration of $1.5 billion.
A portion of the transaction’s net proceeds will be used to fortify HBC’s balance sheet by fully repaying its outstanding $436 million term loan. Upon close, HBC will completely exit its German operations.
“Financially, it provides us with the best opportunity to capitalize on our German real estate and allows us to further strengthen our balance sheet,” said Helena Foulkes, CEO of HBC. “Strategically, we will be able to fully focus our resources on HBC’s North American operations, including our best growth opportunities — Saks Fifth Avenue and Hudson’s Bay. This transaction is another bold action that unlocks the value of our real estate and demonstrates our resolve to creating a