Saks Fifth flagship is “added gift” for Hudson’s Bay: VIDEO

CEO Richard Baker plans to plow more money into iconic building valued at $3.7B

New York /
Nov.November 26, 2014 10:15 AM

Owning the most valuable retail store in the country is a “little added gift with purchase,” Hudson’s Bay Company Chief Executive Officer Richard Baker said in a television interview.

Hudson’s Bay bought the Saks department store chain last year for $2.9 billion and with it acquired the retailer’s Fifth Avenue flagship location, recently valued at $3.7 billion, according to CNBC.

The stretch where the store is located — on Fifth Avenue between 49th and 59th streets — now has the highest rents in the city. The northern part of Fifth Avenue surpassed Hong Kong’s Causeway Bay this year as the most expensive strip of real estate in the world.

Baker, talking to CNBC, compared the company to others that have hidden real estate assets that are worth a lot, such as Hilton’s nearly $2 billion sale of the Waldorf Astoria to Chinese insurance giant Anbang Group.

“It’s important to let shareholders understand the value of the assets in our company,” Baker said.

Hudson’s Bay also secured a $1.25 billion loan against the building, with a fixed interest rate below 4.4 percent. Part of the loan — approximately $250 million — will be invested into renovating the property.

“This is the single most valuable retail building in the world,” the CEO told CNBC, “and it deserves to be the finest retail store in the world.” [CNBC] — Claire Moses 


Related Articles

arrow_forward_ios
A photo illustration of Fifth Avenue, Grand Central and SoHo in New York City (iStock)
Manhattan retail rents tick up as recovery slogs along
Manhattan retail rents tick up as recovery slogs along
Valentino store at 693 Fifth Avenue in Manhattan and Valentino CEO Jacopo Venturini (Google Maps, Getty)
Valentino settles Fifth Ave pandemic rent dispute
Valentino settles Fifth Ave pandemic rent dispute
 680 Fifth Avenue in Manhattan (Google Maps, iStock, Illustration by Shea Monahan for Real Deal)
Swarovski to shine at forthcoming Fifth Ave flagship
Swarovski to shine at forthcoming Fifth Ave flagship
Steve Roth: NYC retail might never fully recover
Steve Roth: NYC retail might never fully recover
Steve Roth: NYC retail might never fully recover
Manhattan retail rents fell without tourists, office workers
Manhattan retail rents fell without tourists, office workers
Manhattan retail rents fell without tourists, office workers
Vornado Realty Trust’s Steven Roth and Michael Franco (Getty, Vornado)
NYC retail has hit bottom: Roth
NYC retail has hit bottom: Roth
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
Hudson’s Bay Company restructures $846M CMBS loan
NBA store settles rent-collection lawsuit suit with landlord Moinian Group
NBA store settles rent-collection lawsuit suit with landlord Moinian Group
NBA store settles rent-collection lawsuit suit with landlord Moinian Group
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...