Canadian retail conglomerate Hudson’s Bay Company has just closed $400 million in refinancing for the Lord & Taylor flagship in Manhattan.
The new loan replaces a $250 million mortgage due in September of next year. According to a Hudson’s Bay press release, the fund will be used to reduce the company’s debt. A group led by Canadian Imperial Bank of Commerce provided funding for the mortgage. The new loan will mature in August of 2021.
”The opportunistic refinancing of the mortgage on the L&T flagship property is yet another example of the successful execution of our strategy as we continue to leverage our significant real estate portfolio. We are pleased to extend our Company’s debt maturity profile as well as secure an attractive interest rate of 4.3% through the term of the new mortgage,” Richard Baker, HBC’s governor and executive chairman, said in a press release.
In addition to closing its new mortgage, Hudson’s Bay also authorized the lenders to appraise the property. The appraiser valued the store, which is located at 424-438 Fifth Avenue, at $655 million.
Hudson’s Bay has been exploring ways to extract value from its real estate assets since last year, when it formed a joint venture with mall developer Simon Property Group. Hudson’s Bay folded 42 Saks Fifth Avenue and Lord & Taylor stores into that partnership. However, it later sold $533 million worth of equity in the JV to Ivanhoe Cambridge, Madison International Realty and an unnamed pension fund.