{"id":6504,"date":"2020-12-09T23:43:23","date_gmt":"2020-12-09T23:43:23","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2020\/12\/09\/u-s-malls-owners-are-buying-up-distressed-retailer-tenants-will-canadian-counterparts-follow\/"},"modified":"2020-12-09T23:43:23","modified_gmt":"2020-12-09T23:43:23","slug":"u-s-malls-owners-are-buying-up-distressed-retailer-tenants-will-canadian-counterparts-follow","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2020\/12\/09\/u-s-malls-owners-are-buying-up-distressed-retailer-tenants-will-canadian-counterparts-follow\/","title":{"rendered":"U.S. malls owners are buying up distressed retailer tenants. Will Canadian counterparts follow?"},"content":{"rendered":"

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Article content continued<\/h2>\n

\u201cIt is opportunity specific,\u201d said Snyder, adding that some retail acquisitions in the U.S. have been pursued to keep the anchor tenant in a shopping mall and preserve so-called co-tenancy provisions. Once an anchor tenant leaves, these co-tenancy clauses can trigger reduced rents for other mall tenants or allow them to get out of lease commitments relatively unscathed.<\/p>\n

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It\u2019s going to make sense in certain circumstances that these landlords back or buy some of these material retailers<\/p>\n

Bradley Snyder, Tiger Capital Group<\/p>\n<\/blockquote>\n

Some landlords, spooked by the complications of running a retail operation, have sought strategic partners, Snyder said, pointing to another form of deal that has gained traction in the U.S.<\/p>\n

Simon Property Group, which has bid on struggling retailers including Brooks Brothers, Forever21 and Lucky Brands, partnered with Authentic Brands Group to acquire apparel and accessories brand A\u00e9ropostale, for example.<\/p>\n

Still, some industry watchers are skeptical Canadian landlords will follow the path of their U.S. counterparts, suggesting that the risk profile of a retailer doesn\u2019t fit the investment appetite of pension funds in which they are housed.<\/p>\n

\u201cI would be surprised if the big pension funds were going down this path,\u201d said Charlene Schafer, a partner specializing in commercial real estate and private equity at law firm Torys LLP in Toronto.<\/p>\n

She noted that such investments would have to meet the specific criteria of the risk officers or committees at some of Canada\u2019s largest and most sophisticated pension funds.<\/p>\n

\"Oxford<\/picture>
Oxford Properties Group partly owns Toronto\u2019s Yorkdale Shopping Centre<\/span> Photo by Peter J. Thompson\/National Post files<\/span><\/figcaption><\/figure>\n

Cadillac Fairview, which owns 19 shopping malls across the country including the Toronto Eaton Centre, is part of the Ontario Teachers\u2019 Pension Plan. OMERS, which oversees the pension of municipal workers in Ontario, owns Oxford Properties, another large owner of shopping centres. And Ivanho\u00e9 Cambridge, owner of 26 shopping malls across Canada, is housed within the Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec.<\/p>\n<\/div>\n\n
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Article content continued \u201cIt is opportunity specific,\u201d said Snyder, adding that some retail acquisitions in the U.S. have been pursued to keep the anchor tenant in a shopping mall and…<\/p>\n","protected":false},"author":2,"featured_media":6500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-6504","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/6504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=6504"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/6504\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/6500"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=6504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=6504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=6504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}