WeWork, HBC strike $850M deal for Lord & Taylor's NYC flagship
October 25, 2017
A joint venture between WeWork and Rhône Capital has agreed to pay $850 million to acquire the flagship location of luxury retailer Lord & Taylor on Manhattan's famed Fifth Avenue, with WeWork planning to use the property both as a new headquarters and as a co-working space. In a related move, Rhône will invest $500 million in Hudson's Bay Company, the parent of Lord & Taylor.
The transaction has obvious benefits for both sides: WeWork will take over an iconic location as its HQ following the 2018 holiday season, while HBC will reduce its overall debt by some C$1.6 billion (about $1.26 billion) and add about C$1.1 billion to its total liquidity. In addition, WeWork has agreed to lease retail space within HBC department stores in Toronto, Vancouver and Frankfurt, with more real estate partnerships possible down the line.