Shopping Centers Today February 2016
The Common Area
Off-price is going omni-channel in a deal that will team online luxury flash-sale site Gilt and discount department store chain Saks Off 5th. Toronto-based department store conglomerate Hudson’s Bay Co. (HBC), which owns and operates the Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue and Saks Off 5th chains, will buy Gilt Groupe Holdings for $250 million.
The numbers testify to the success of Yarina Landa’s work at Jockey Plaza. In the course of her career and rise at this famous Peru mall — she joined in 2005 as marketing and retail manager and was named CEO and general manager last year — sales have doubled, from $338 million her first year there to some $676 million projected for this year.
Cato Fashions is ripe for expansion, but finding locations in a tight U.S. real estate market has been tricky. This value-price fashion and accessories retailer, which operates the Cato, It’s Fashion and Versona specialty chains, has “no capital constraints that would inhibit new store growth,” according to CEO John Cato. “But lack of new shopping center development is making it difficult to grow store count.”— SCT February 2016
The Bottom Line
U.S. legislation passed Dec. 18 will allow U.S.-based REITs to attract more capital from foreign investors. The new law, which relaxes the strict tax rules that govern foreign investment in real estate, had the support of ICSC and other commercial real estate trade associations. As an offset for this provision, there were updates to the REIT rules, including limits on REIT spinoffs from non-real-estate holding companies.— SCT February 2016