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Transactions - NOVEMBER 18, 2015

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Hudson’s Bay Co. sells $533m of equity in HBS Global Properties

by Andrea Waitrovich

Hudson’s Bay Co. has sold a total of $533 million of its equity in HBS Global Properties, HBC’s real estate joint venture with Simon Property Group, to three third-party investors.

This equity sale follows the company’s announcement in September that it expected to sell between $400 million and $600 million of equity in HBS Global Properties.

The total third-party investment of $533 million values HBS Global Properties’ portfolio at $4.5 billion based on a blended capitalization rate of 5.9 percent, and is comprised of individual investments from the following entities: $250 million equity investment by Ivanhoé Cambridge; $150 million equity investment by Madison International Realty; and $133 million equity investment by an undisclosed U.S. pension.

Proceeds from the equity sale, together with cash on hand, will be used to reduce HBC’s outstanding term loan B borrowings from $1.09 billion to $500 million.

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