While those in the retail business are talking about Hudson’s Bay Co’s acquisition of a German department store chain, real estate analysts are admiring the canny play by the firm in also acquiring the real estate assets. In a separate but simultaneous deal to the store purchases, HBC and its joint-venture real estate partner Simons Property Group acquired $3.3 billion in retail properties. Hudson’s Bay will benefit to the tune of around $200 million in annual revenue. The Financial Post notes that HBC is creating a retail and real estate hybrid unlike any other retailer and Toronto based real estate specialists Interstratics Consultants say that although others see the potential they won’t take the risk. HBC’s property portfolio, including the new acquisitions will be $11 billion including the prestigious New York Saks 5th Avenue store on which it has a $1.25 billion mortgage.
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