November 24, 2014 / 12:22 PM / in 4 years

Hudson's Bay real estate backed $1.25 bln refinancing deal

TORONTO, Nov 24 (Reuters) - Canadian department store operator Hudson’s Bay Co outlined a $1.25 billion refinancing plan on Monday, in a move to reduce debt taken on when it acquired U.S. rival Saks last year.

The retailer said it is taking out a 20-year mortgage on the ground portion of its flagship Saks Fifth Avenue store located at 611 Fifth Avenue in New York City, after an appraiser valued the entire property at C$4.1 billion ($3.65 billion).

“This mortgage transaction allows us to capitalize on the value of this asset today, but also provides structural flexibility to capture additional value creation in the future,” said HBC Chief Executive Richard Baker, in a statement.

$1 = $1.1239 Canadian Reporting by Euan Rocha; Editing by Chizu Nomiyama

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