TORONTO, Aug. 6, 2014 /CNW/ - Ivanhoé Cambridge and Sears Canada Inc.
(TSX: SCC) announced today that they have entered into an agreement for
the sale of their interests in Kildonan Place, a shopping centre
located in Winnipeg. Both Ivanhoé Cambridge's 80% ownership interest
and Sears 20% ownership interest in the property are to be sold for
total pre-tax consideration of $138.5 million, $110.8 million being
Ivanhoé Cambridge's share and $27.7 million being Sears Canada's
share. The purchaser is H&R Real Estate Investment Trust, who intends
to assign an undivided 50% interest to Montez Income Properties
Corporation prior to closing. Primaris Retail REIT, a wholly-owned
subsidiary of H&R REIT, will manage the property. The transaction is
expected to close on September 17, 2014.
Commenting on the acquisition, Primaris' Chief Operating Officer,
Patrick Sullivan, said, "We are pleased to increase Primaris' portfolio
in the Winnipeg market with the acquisition of Kildonan Place. The
acquisition of this shopping centre is part of our defined property
strategy to own properties dominant in their trade area throughout
Canada. This is our niche and we excel at managing, leasing and
developing this type of property".
Arthur Lloyd, Ivanhoé Cambridge's Executive Vice President, Global
Investments commented: "The freed-up capital from this transaction will
allow us to strengthen our Canadian retail portfolio, including our
Mills and Outlet Collection retail development projects across the
"Sears will continue to operate its department store at Kildonan Place,"
said Douglas C. Campbell, President and Chief Executive Officer, Sears
Canada Inc. "This transaction will have no effect on associates
employed at the store, or on the operation of the store which will
continue to serve the residents of Winnipeg and surrounding area as it
has proudly done for nearly 35 years since its opening in 1980."
About H&R REIT
H&R REIT is Canada's largest diversified real estate investment trust
with a total capitalization of approximately $12.8 billion as at March
31, 2014. H&R REIT is a fully internalized REIT and has ownership
interests in a North American portfolio of high quality office, retail
and industrial properties comprising over 53 million square feet.
About Ivanhoé Cambridge
Ivanhoé Cambridge is a world-class real estate company that leverages
its high-level expertise in all aspects of real estate including
investment, development, asset management, leasing and operations, to
deliver optimal returns for its investors. Its assets, held through
multiple subsidiaries and located mainly in Canada, the United States,
Europe, Brazil and Asia, totalled more than Cdn$40 billion as at
December 31, 2013. Its portfolio consists mainly of shopping centres,
office and multiresidential properties. Ivanhoé Cambridge is a real
estate subsidiary of the Caisse de dépôt et placement du Québec (lacaisse.com), one of Canada's leading institutional fund managers. For further
About Sears Canada
Sears Canada is a multi-channel retailer with a network that includes
176 corporate stores, 234 Hometown stores, over 1,400 catalogue and
online merchandise pick-up locations, 97 Sears Travel offices and a
nationwide repair and service network. The Company also publishes
Canada's most extensive general merchandise catalogue and offers
shopping online at www.sears.ca.
SOURCE: Sears Canada Inc.
For further information:
Contact for Media:
Sears Canada, Corporate Communications