Toronto -- Sears Canada Inc. will enter into a series of transactions related to two stores within shopping centers co-owned by Oxford Properties Group and Alberta Investment Management Corporation that give the co-owners the right to require Sears Canada to vacate the properties by March 2014. The transactions, valued at $191 million, affect stores at the Yorkdale Shopping Centre in Toronto and at Square One Shopping Centre in Mississauga.
In addition to the agreement on the two stores, Sears has also agreed to sell an option relating to a third store located at Scarborough Town Centre to the co-owners for financial consideration of $1 million. The co-owners have five years to exercise the option on this property at a fixed total cost of $53 million. All three transactions are expected to be finalized on June 24.
"When transactions such as this become available, we must evaluate the trading value other possible release of these properties is a way to increase the total value of Sears Canada’s holdings,” said Calvin MacDonald, president and CEO of Sears Canada. “In this case, we were presented with an opportunity that gives us a significant financial benefit without changing our plans to improve the business and make Sears more relevant to Canadians.”
Sears said that any employees whose jobs are affected by any store closings will be offered other jobs with Sears Canada in the greater Toronto area.