The Hudson's Bay lease at the Medicine Hat Mall was not subject to a bid by other retailers in a court creditors auction this month. Landlord Primaris REIT stated this week it plans to renovate the space and four other former Bay locations it owns across Canada.--News File Photo
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The Medicine Hat Mall owner says the local Hudson’s Bay location was not among four of its locations where the bankrupt retailer’s leases were bid upon in court dispersal processes this month.
Primaris REIT stated May 26 it will therefore begin “repurposing” five locations across Canada at a potential total cost of $50 million to $60 million.
Bay locations in fully-owned Primaris facilities at Medicine Hat, Quebec City and Sunridge Mall in Calgary were passed over in a bidding process, along with two locations in Orleans and Kingston, Ont. where Primaris is 50 per cent facility owner.
Those spaces comprise 532,000 square feet of retail space, representing about $5.5 million in rent to the national real estate company, but could be improved now that lease contracts have ended, says the company.
“Regaining control of five of our valuable anchor locations allows Primaris to commence repurposing a significant amount of low productivity space,” said Alex Avery, Primaris’s CEO in a statement.
“While HBC has been the focus of a lot of discussion and attention, the real story is just beginning, as the disclaiming of leases has finally removed obstructionist barriers enabling us to enhance our properties. We are confident that the … benefits of regaining control of these spaces will be materially positive for our properties and our unit-holders.”
Four other locations are subject to bids that are being evaluated.
Primaris previously stated it was well prepared for the insolvency of the Hudson’s Bay when it was announced earlier this year. It had hoped other retailers would take over locations but was prepared to rework space into smaller bays for offer to mid-sized retailers.
The Medicine Hat Mall underwent a similar process twice in the 2010s; first when the Target space was broken up and food court renovated, and then when Sears closed down.
Primaris will assume control the space on June 16.
