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

The Guardian (Charlottetown) - - OBITUARIES / BUSINESS -

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.

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