HBC launches HBC Properties and Investments
HBC unveiled on Monday a new dedicated real estate and investments business launched to lead the company’s portfolio of assets, including some 40 million square feet of gross leasable area across North America.
Dubbed 'HBC Properties and Investments', the strategic launch will stand along the company’s retail business including retail banners Hudson’s Bay in Canada, Saks Fifth Avenue and Saks Off 5TH.
With a portfolio featuring Streetworks Development, a large-scale property development division that creates transformative multi-use environments, it hopes to build a holding company structure with distinct portfolio businesses that operate at the intersection of retail and real estate.
“This is an exciting phase of our company’s transformation and provides us with a significant opportunity to unleash the full potential of our real estate and investments business,” said Richard Baker, HBC’s executive chairman and CEO.
“Under this new organization, we will build upon our strong foundation of valuable real estate assets in key demographic areas. We will also continue our strong track record of maximizing our portfolio and generating value from these assets, as we did through the sales of the Lord + Taylor flagship building and our interest in European real estate assets.”
As part of the HBC Properties and Investments initiative, the Streetworks Development team will be tasked with creating multi-use spaces that feature a variety of services and experiences across the workplace, retail, residential and entertainment categories.
Ian Putnam has been appointed president and CEO of HBC Properties and Investments. He previously served as president, real estate and chief corporate development officer of HBC. Meanwhile, Kenneth Narva, chairman and chief development officer at HBC, will direct the Streetworks Development team in the planning and execution of its projects.
“With HBC’s valuable portfolio of real estate and investments, including marquee flagship properties in prime metropolitan markets, coupled with Streetworks Development expertise, HBCPI is well-positioned to succeed in today’s landscape,” Putnam said.
“As consumers continue to change the way they live, shop and work, we are committed to capitalizing on these shifts while maximizing the productivity of our properties, including the physical locations of HBC’s retail operating companies.”
The iconic retailer is currently being sued for unpaid rent by two of its landlords. Court documents allege HBC owes more than $3.5 million in rent and other fees at five Quebec shopping malls.
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