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 law.
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.
