Madison International Buys 1.3% Stake in Hudson’s Bay Company

NEW YORK — Real estate private equity firm Madison International Realty has made a new investment in Hudson’s Bay Company, owner of Lord and Taylor and Saks Fifth Avenue retail chains.  Madison has acquired 1.3% of Hudson’s Bay common stock, in addition to a previous investment of $200 million in HBS Global Properties. The firm sees Hudson’s Bay as an attractive value with prime retail real estate properties and global retail brands.

Andrew Schaffler, Madison’s Director of Listed Real Estate Securities, said Madison’s partnership and endorsement demonstrates recognition of Hudson’s Bay management team and its Board of Directors’ vision for a best in class retailer addressing today’s consumer preferences.

“The significant value embedded in Hudson’s Bay’s real estate is clear and the investment across the store network, digital platform, and into complementary brands will serve to optimize margins and profitability as well as further enhance the inherent real estate value, which can be monetized methodically over time. Similar to successes experienced in Canada, recent investments are already yielding positive results including the upcoming introduction of existing brands in Germany, improving margins in the off-price channel, and corporate synergies,” Schaffler said.

Hudson’s Bay Company is based in Toronto and New York with a total of 472 stores worldwide including Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, Off 5th and Home Outfitters. The company’s shares trade on the Toronto Stock Exchange.

Madison International Realty specializes in acquiring partial ownership, joint venture, private REIT and listed real estate shares in prime properties and portfolios in major markets in North America, the U.K. and Western Europe. The firm also provides joint venture equity to owners, sponsors and investors who are seeking to monetize existing equity positions, restructure balance sheets, or to replace existing capital partners.