Hudson’s Bay Company (HBC) has announced that it will open a Saks Fifth Avenue store within its flagship location across from the Toronto Eaton Centre.

HBC’s current store, at the corner of Yonge and Queen Streets across from the Eaton Centre, will soon contain a 150,000-square-foot Saks location, housed on multiple levels. It is expected to open in fall of 2015.

HBC also announced that it will sell its downtown flagship store and the adjoining Simpson’s Tower to an affiliate of The Cadillac Fairview Corporation Limited, which owns the Eaton Centre, for $650 million. HBC will lease both the retail complex and office tower for a base term of 25 year. There are renewal options for a term just under 50 years.

Cadillac Fairview and HBC have also entered into an agreement for HBC to lease space in Toronto’s Sherway Gardens for a second Saks location.

“The opening of our first Saks Fifth Avenue stores at Toronto Eaton Centre and Sherway Gardens brings Canadian shoppers the full array of luxury fashion collections and exceptional service for which Saks is renowned,” says Richard Baker, governor and CEO of HBC.

The transaction follows the announcement that high-end retailer Nordstrom will take over the soon-to-be vacant Sears flagship location at the Toronto Eaton Centre’s north end.