Advice for Hudson’s Bay: build condos

Company sold its Manhattan Lord & Taylor flagship last year

Jun.June 13, 2018 10:17 AM

Hudson’s Bay Department Store (Credit:

Hudson’s Bay Companies, the owner of Saks Fifth Avenue and Lord & Taylor, is looking to reclaim capital, and one of its shareholders has offered a solution: cash in on condos above its stores.

The Canadian retailer has been cutting losses across the business as its share price has dropped 22 percent in the past two years.

This month it announced the closure of its flagship Lord & Taylor store at 424 Fifth Avenue after selling the building last year to WeWork and Rhone Capital for $850 million.  It also recently sold its online shopping site Gilt, and in March, the company sublet a full floor at 250 Vesey Street to Scotiabank.

At its annual meeting Tuesday in Toronto, a shareholder asked why the company hadn’t thought to turn the space above its stores into condos and cash in on them, Bloomberg reported.

“Are you waiting for us to go into a recession before you sell some of your real estate, or do something with it?” asked Heino Ader, an investor who’s watched his stock declined for the past two years, according to the report.

The company’s share price bump up 3.6 percent to $11.67 per share Tuesday. [Bloomberg] — David Jeans

Related Articles

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Kitopi CEO Mohamad Ballout (Credit: Kitopi and iStock)

“Smart” kitchen and delivery startup raises $60M for US expansion

Cadre founder Ryan Williams and Allen Smith

Cadre brings on former Four Seasons CEO as president

AKS Capital Partners Managing Partners Aaron Appel and Walker & Dunlop CEO Willy Walker

Walker & Dunlop acquires Aaron Appel’s AKS Capital Partners

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

Vornado CEO Steve Roth and 595 Madison Avenue (Credit: Google Maps and Getty Images)

Fendi, Berluti take over old Coach flagship at 595 Madison

From left: Authentic Brands Group CEO Jamie Salter, Simon Property Group CEO David Simon, and Forever 21 CEO Do Won Chang (Credit: Getty Images)

Forever 21’s biggest landlord could become its new owner