HBC, RioCan may sell flagship Vancouver store in $675mn deal

Leading Canadian retailer Hudson's Bay Company (HBC) has reportedly agreed to sell its flagship Granville St. property in Vancouver that it owns in a joint venture with RioCan for CAD$675mn.

The news from Reuters states that the firm's leading department store will be sold to an Asian buyer, according to a source close to the matter. Further, Reuters reveals that the buyer is allegedly looking to source financing from one or more Canadian lenders, with a deal expected to finalises sometime in June.

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Reports of the potential sale come after RioCan and HBC said that they would be exploring a sale of the property, with BCRE and Brookfield Financial Real Estate Group previously having been named as parties of interest.

The Granville St. location is just one of 10 properties that the joint venture between RioCan and HBC holds across Canada, with HBC holding an 88.1% of the REIT.

It remains to be seen whether a deal will come to fruition, with both HBC and RioCan yet to confirm the rumours.