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Sears Canada Names Concord Pacific as Developer for Burnaby Metrotown

Sears Canada Names Concord Pacific as Developer for Burnaby Metrotown 
TORONTO, Oct. 11, 2013 /CNW/ - Sears Canada Inc. (TSX: SCC) is announcing 
today that it has entered into a binding agreement with Concord Pacific Group 
of Companies ("Concord") to pursue the development of the Sears site located 
at the Metropolis at Metrotown in Burnaby, British Columbia. Closing under 
the agreement is conditional upon satisfaction of conditions such as site 
investigations, strategic considerations relating to the project, and 
obtaining the approval from the City of Burnaby for the project, which is 
expected to take some time. On June 7, 2013, Sears announced that it had 
submitted an application to the City of Burnaby regarding nine acres of the 
Company's property on and adjacent to its store at that location. 
In its June 7 announcement, Sears stated it was seeking approval to develop a 
comprehensive mixed-use project including the construction of a new Sears 
department store to replace the existing store. The vision of the 
redevelopment is a major urban-infill project consisting of seven residential 
and office high-rises along with ground-level retail. Concord brings its 
development experience, depth and diversity to the joint arrangement. Concord 
develops comprehensive multi-phased urban communities across Canada including 
Concord Pacific Place in Vancouver and CityPlace in Toronto, Canada's largest 
and second largest urban communities respectively. 
"We are pleased to join with Concord on this significant project," said Doug 
Campbell, President and CEO, Sears Canada Inc. "The possibilities for this 
location as Concord and Sears have conceptualized it are very exciting. We 
look forward to working together and moving the project forward." 
The arrangement contemplates the sale of a 50% interest in the site for a 
value of approximately $140 million, subject to adjustments, and the retention 
of Concord on customary terms to manage most facets of the development. $15 
million of the purchase price is to be paid in cash on closing, with the 
balance represented by an interest-free long term note secured by Concord's 
50% interest in the property, the principal of which is expected to be repaid 
out of cash flow over time. It is contemplated that this note will be 
subordinated to other debt financing expected to be raised and used to develop 
the project. The note will be guaranteed by a Concord affiliate. Following the 
transfer of the 50% interest, the parties would enter into a co-ownership 
joint arrangement. If third party debt financing cannot be obtained, Concord, 
and not Sears, will be responsible for providing debt financing to develop the 
project (which would, with certain exceptions, be subordinated to the 
long-term note held by Sears). The estimated cost to fully develop and build 
out the project as contemplated is currently in excess of $1 billion dollars 
in 2013 dollars. 
Sears reminds the public that, given the very early stage the project is in 
today, there has been no determination as to capital or other expenditure 
required, if any. In addition, it is too early to tell whether or not the 
project will be completed given a multitude of potential factors, both 
internal and external, such as the economic value to the Company, obtaining 
approval of the project from the City of Burnaby, shifts in the Canadian 
economy, and the condition of the real estate market now or in the future, 
during this multi-year endeavour. 
Sears Canada is a multi-channel retailer with a network that includes 181 
corporate stores, 246 Hometown stores, over 1,400 catalogue and online 
merchandise pick-up locations, 101 Sears Travel offices and a nationwide home 
maintenance, repair, and installation network. The Company also publishes 
Canada's most extensive general merchandise catalogue and offers shopping 
online at www.sears.ca.
 

SOURCE  Sears Canada Inc. 
Contact for Media: Vincent Power Sears Canada, Corporate Communications 
416-941-4422 vpower@sears.ca 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/October2013/11/c9590.html 
CO: Sears Canada Inc.
ST: Ontario
NI: RET ORDER  
-0- Oct/11/2013 22:32 GMT
 
 
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