Hudson's Bay Company has announced the Vancouver HBC building is up for sale.

Joint owners, RioCan and HBC, hired commercial realtor, CBRE and Brookfield Financial Estate Group to handle the sale of the 674 Granville Street HBC property.

Owners expect to close on a $200 million mortgage.

Photo Credit: Google MapsHBC, downtown Vancouver.

“We are exploring a sale of this flagship property as the Vancouver real estate market has appreciated significantly over the past several years. While no decision to sell has been made, we continue to explore opportunistic transactions to enhance shareholder value,” stated Richard Baker, HBC’s interim Chief Executive Officer. 

As department stores continue to struggle to stay afloat in today's bolstering e-commerce market, HBC has pressure from founder and CEO of Land & Buildings, Jonathan Litt.

Litt, a global real estate strategist, is also a shareholder of HBC and has put pressure on HBC to create more transparency with its shareholders.

He argues that HBC's real value is in its real estate rather than its retail.

"We have called on Hudson’s Bay to be more open with shareholders about its plan for addressing its massive undervaluation and for the Company to take decisive action. With its real estate valued at three times the current share price, Hudson’s Bay today is a real estate company, full stop," stated Litt.

However, Baker suggested he would try to maintain the store operations after the property sale.

Photo Credit: Google MapsGranville Street, HBC.

“We are committed to operating our Hudson’s Bay store at this location and any possible sale would include the continued operation of Hudson's Bay at this property,” stated Baker.

Litt added that the Company had "failed to clearly outline to shareholders a plan to unlock the substantial real estate value trapped in the Company."

Litt's statement was issued on October 23rd, when he requested a special share holders meeting.

The announcement of the Vancouver sale took place on October 30th, one week after Litt's request for a meeting.

The announcement also comes less than a week after the $1 billion sale of Lord & Taylor on 5th Avenue in New York City.

The property is under a long term lease by Hudson's Bay.

The mortgage is expected to be a four-year term with a prime plus rate of 1.0% with no prepayment penalty.

BMO Capital Markets Real Estate Inc. is the exclusive finical advisor.

The HBC and RioCan Real Estate Investment partnership owns 10 flagship properties in Canada, including, Vancouver, Calgary, Ottawa and Montreal.