Hudson’s Bay Co. CEO Richard Baker says that its recent purchase of luxury department store chain Saks for $2.9 billion is just the beginning of the company’s real estate portfolio growth. Baker told shareholders at the company’s annual meeting last week that HBC’s $650 million sale-leaseback deal with Cadillac Fairview “gave a glimpse into the power of our assets.”
“We think Saks’ owned real estate is worth at least as much as we paid for the entire company,” says Baker. The company’s real estate portfolio spans over 15 million square feet of owned and ground-leased properties, estimated to be worth $4 billion.
Baker expressed that he sees a void in the Canadian luxury market, which he plans to fill with seven full-line Saks stores and up to 25 Saks Off Fifth outlets. CJ