United States

Hudson’s Bay bags big profit on German department store deal

Hudson’s Bay Co. is shrinking its retail empire overseas — and bagging a bundle in the process. The Toronto-based owner of Saks Fifth Avenue said Tuesday it will net proceeds of $616 million as it sells half the real estate of Galeria Kaufhof, the German department store chain it acquired in 2015. Kaufhof’s real estate was valued at $4.9 billion under the deal — $1.1 billion higher than what HBC paid for all of Kaufhof and its real estate just three years ago. HBC said it will use the proceeds to pay down debt. “This transaction reinforces our long-term focus of unlocking real estate value through strategic partnerships,” Baker said in a statement. Shares of HBC, which also owns the Lord & Taylor chain, were up more than ...