Target Reaches Settlement Over Abandoned Canadian Leases
24 November 2015 - 6:24AM
Dow Jones News
By Carolyn King
TORONTO-- RioCan Real Estate Investment Trust said Monday it had
reached a settlement with Target Corp. over 18 leases the
Minneapolis-based retail giant abandoned when it exited the
Canadian market this year.
RioCan, which owns and manages the largest portfolio of shopping
centers in Canada, said Target paid 132 million Canadian dollars
(US$99 million) as part of the settlement, including C$92 million
to RioCan and the balance to various co-owners. Target in turn has
been released from indemnity agreements covering those
locations.
Target had 26 leases with RioCan when it decided in January to
close the more than 130 stores it had in Canada. The REIT said in
June that the Canadian unit of Lowe's Cos. and Toronto-based
retailer Canadian Tire Corp. agreed to take up to eight former
Target store locations. It said Monday that six locations had been
assigned to Lowe's and one to Canadian Tire, and that it was
working to fill the remaining 19 premises.
"The proceeds of the settlement will be utilized by RioCan and
its co-owners to mitigate losses caused by Target Canada's
departure and disclaimer of the subject Leases," the REIT said.
Write to Carolyn King at carolyn.king@wsj.com
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(END) Dow Jones Newswires
November 23, 2015 14:09 ET (19:09 GMT)
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