55 Former Target Canada Stores Up for Grabs
CANADA - Target is returning 55 stores back to the landlords it had leased from, as well as 19 office and warehouse space leases.
“Unfortunately, they’re coming in at a time when the retail environment is somewhat challenging,” Edward Sonshine, Chief Executive Officer of RioCan Real Estate Investment Trust, said in a Globe and Mail interview.
The company filed with the Ontario Superior Court of Justice, according to The Star, saying that any leases that hadn’t been returned to the respective landlords by yesterday (May 4), today (May 5), and tomorrow (May 6) will be auctioned off individually.
While the real estate may not be the best as of yet, Target’s financial adviser Lazard Freres & Co. LLC was reportedly in contact with about 360 prospective parties for the leases, according to a Alvarez & Marsal Canada Inc. report of monitor.
According to the Globe and Mail report, retailers believed to have a vested interest in the leases include:
- Wal-Mart Canada Corp.
- Canadian Tire Corp.
- Loblaw Cos. Ltd.
- Lowe’s Canada
- Sears Canada Inc.
Target reportedly also signed with Oxford Properties Corp. and Ivanhoe Cambridge Inc. (a pair of Canada’s largest landlords) to buy back 11 leases for its more ideal stores for $138 million, according to the report.
Those that will benefit from the income Target receives once the properties are auctioned will soon see the outcome, so keep checking in to AndNowUKnow.
