Winnipeg Free Press - PRINT EDITION
Posted: 06/15/2013 1:00 AM | Comments: 0
TORONTO -- Sears Canada Inc. (TSX:SCC) will be vacating at least two major Toronto-area stores and possibly a third in return for cash payments from its landlords, who, analysts say, will be able to offer the prime space to tenants such as Nordstrom and Holt Renfrew.
Sears, operator of a national chain of department stores, says it will get $191 million in cash for vacating its locations at Yorkdale Shopping Centre in Toronto and Square One Shopping Centre in Mississauga, Ont., by next March.
It could also receive up to an additional $54 million if the landlords exercise an option to have Sears withdraw from its location at Scarborough Town Centre within five years. That would include $1 million Sears gets for the option.
Calvin McDonald, president and chief executive of Sears Canada, said the offer came from the landlord, Oxford Properties Group, who co-owns the properties with Alberta Investment Management Corp., the provincial pension fund also known as AIMCo.
"They obviously have their plans," McDonald said in an interview, but he would not speculate on what they are.
The amount of money Oxford offered for the leases far exceeds how much money Sears believes it can generate at those locations, said McDonald.
Analysts at RBC Dominion Securities and RBC Capital Markets said they think Nordstrom -- a Seattle-based chain -- will get the Yorkdale location while Montreal-based Holt Renfrew will lease the Square One space.
In a research note published Friday, the analysts say they think the landlords will shelve planned expansions.
"Our educated guess is that those expansions to accommodate another anchor tenant will be tabled and both Nordstrom and Holt Renfrew will enter the Sears Canada locations," they said.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition June 15, 2013 $sourceSection0
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Fiorina says she'd neutralize Clinton's gender arguments
Highway abuzz with millions of bees after big truck tips
Video released of 'Suge' Knight running over 2
US oil and natural gas rig count drops by 34 to 954
Senator: Decade-old Gulf oil leak is 'unacceptable'
Bank of China awarded $672 million in B.C. court
Worker burns face, neck in explosion at Ohio chemical plant
Group wants to bring back Native Hawaiian burial traditions
Recalls this week: blowers, bike hooks, mattresses, toys
Boost Mobile selling prepaid cards for Cuba calls and texts
Report looks at 2025 in tech crystal ball
Orange you the happy banker?
WikiLeaks creates archive of Sony emails, papers
Minnesota hit hard by bird flu outbreak
Count calories on NYC's Citi Bikes? New features coming soon
Valeant execs share US$123M compensation
Washington governor repeats call for state auditor to resign
No. 1 egg-producing state aims to keep bird flu out
China: New bank to enhance international finance system
Clinton cautious about Obama's Pacific trade deal
Family wins back seized gold coins that could be worth $80M
Suspicious vehicle at arsenal checkpoint prompts evacuation
Most actively traded companies on the TSX
American Express and Mattel are big market movers
Unruly man sentenced in case of jet diverted to Nebraska
How the Dow Jones industrial average fared Friday
Barbie shows signs of life as Mattel plots comeback
Why banks made more money last quarter
Greek 'day of reckoning' shakes stock markets
Mutual fund net sales $9.29B in March: IFIC
Mylan skeptical of rumoured Teva bid; hasn't received offer
Glaxo recalls flu vaccine due to potency problem
Brazil's Petrobras to release audited financial earnings
Man dies in 80-foot fall at Philadelphia construction site
CBC cuts mean 23 positions in Manitoba gone
Protesters meet Arctic drill rig in Washington harbour
Initial public offerings scheduled to debut next week
Manitoba's retail sales edge up
Interior seeks feedback on fees for drilling on federal land