Sears Canada Enters into Development Agreement for Calgary North Hill
TORONTO, June 16, 2014 /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 12-acre Sears site
located at the North Hill Shopping Centre in Calgary, Alberta. Closing under
the agreement is conditional upon satisfaction of conditions such as site
investigations and obtaining the approval from the City of Calgary for the
project, which are expected to take some time.
The vision of the redevelopment is an infill project consisting of residential
high-rises, with a potential retail component. Concord brings its development
experience, depth and diversity to the joint arrangement. Concord develops
comprehensive multi-phased urban communities across Canada and, in 2013,
entered into a similar agreement with Sears regarding the retailer's land
adjacent to its store at Metropolis at Metrotown in Burnaby, British Columbia.
"Sears has been part of the Calgary landscape since 1958 and we are excited
about the possibilities for the North Hill site as conceptualized by Concord
and Sears," said Doug Campbell, President and CEO, Sears Canada Inc. "We plan
to continue operating our store at North Hill as we have for almost six
decades and seeing this new development adding positively to the landscape and
economy of Calgary. We look forward to working together with Concord and
moving the project forward."
The arrangement contemplates the sale of a 50% interest in the site for a
value of approximately $15 million, subject to adjustments, and the retention
of Concord on customary terms to manage most facets of the development.
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.
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 Calgary, shifts in the Canadian
economy, and the condition of the real estate market now or in the future,
during this multi-year endeavour.
Although the Company believes that the forward-looking information presented
with respect to the development project is reasonable, such forward-looking
information involves known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking information, and undue reliance should not be
placed on such information. The forward-looking statements in this release
are made as of the date hereof. The Company does not undertake any obligation
to update publicly or to revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as required by
Sears Canada is a multi-channel retailer with a network that includes 176
corporate stores, 229 Hometown stores, over 1,400 catalogue and online
merchandise pick-up locations, 96 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
To view this news release in HTML formatting, please use the following URL:
CO: Sears Canada Inc.
NI: RET REL ORDER
-0- Jun/16/2014 11:00 GMT
Press spacebar to pause and continue. Press esc to stop.