A court-appointed receiver is now in place to administer assets within the RioCan-HBC joint venture. A statement from RioCan Real Estate Investment Trust confirms that FTI Consulting Canada will oversee a separate receivership process for joint venture (JV) assets, independent from, but in parallel with the Hudson’s Bay Company’s (HBC) proceedings under the Companies’ Creditor Arrangement Act.

“The receivership proceeding will create a structured process within which RioCan can work with a receiver and other stakeholders to advance and execute solutions for the JV’s properties to benefit the JV and its stakeholders. This includes activities such as dispositions, re-leasing and advancing potential redevelopment opportunities of individual properties,” the June 3 statement advises.

Through the joint venture, RioCan holds a 22 per cent interest in 10 former HBC locations, including downtown flagship stores in Montreal and Vancouver and prominent Greater Toronto Area malls such as Yorkdale and Square One. As well, RioCan has a 61 per cent interest in former HBC locations in Oakville Place, in Oakville, Ontario, and the Georgian Mall in Barrie, Ontario.

“RioCan’s exposure to Hudson’s Bay Company, whether as a limited partner, secured lender or guarantor of certain JV obligations, remains unchanged as a result of the receivership proceeding,” the statement reiterates.