HBC activist investor renews calls for retailer to sell off property holdings

TORONTO — Hudson’s Bay Co. (TSX:HBC) is facing heightened calls from a U.S. investor to sell off or otherwise unlock the value from its real estate holdings.

In a letter to the retailer’s board, Connecticut-based Land & Buildings Investment Management said it’s concerned the company has not heeded its call in June to maximize shareholder returns by tapping into its property portfolio.

The investment firm says HBC’s property holdings are worth $35 a share - with the company’s Saks Fifth Avenue flagship store in New York alone worth $16 per share - compared with HBC’s closing price of $10.60 Friday. Land & Buildings, which owns close to five per cent of HBC stock, said it was unsatisfied after a recent meeting with management and threatened to call a special meeting of shareholders to remove board members if action isn’t taken on the property front.