On September 17, 2025, Toronto-based RioCan REIT announced a plan to buy out Hudson’s Bay Company’s share in a joint venture controlling Georgian Mall (Barrie) and Oakville Place (Oakville, Ontario). RioCan will pay about CAD $140.67 million to secure the 50% stake that was under HBC’s portion. The deal is pending approval from the Ontario Superior Court.
What’s the Background?
RioCan and HBC formed a joint venture in 2015, contributing several properties including Georgian Mall and Oakville Place. Over the years, RioCan held 50% ownership in both malls, while Hudson’s Bay contributed both freehold and leasehold properties across multiple assets.
Earlier in 2025, the joint venture was placed under receivership at RioCan’s request after the creditor protection proceedings for HBC failed to resolve the JV’s financial issues. After discussions, RioCan negotiated to buy out the JV’s 50% interests in both malls.
Deal Details & Financials
RioCan is purchasing:
- The 50% stake in Georgian Mall for CAD $77.62 million
- The 50% stake in Oakville Place for CAD $63.05 million
So total consideration: CAD $140.67 million. Storeys
To satisfy this, RioCan will assume portions of existing mortgages/loans:
- Georgian Mall’s first mortgage (originally approx. $110 million) held by Desjardins plus a second mortgage (approx $24.5M) held by RioCan itself.
- Oakville Place’s first mortgage (~$95 million) held jointly by TD Bank & Canada Life, plus a variable second mortgage held by RioCan.
Also, there’s a cash payment component of $20 million to wrap up part of the transaction.
Legal & Procedural Aspects
The buy-out requires approval from the Ontario Superior Court. The Receiver (handling the affairs of the JV in receivership) has a 60-day “go-shop” period (from August 13 to October 13, 2025) during which superior offers may be solicited. If RioCan finds any other offer, they’ll have 10 business days to match it. RioCan also is entitled to a 2% break fee if a superior deal materializes.
Strategic Rationale
- Control & Simplification: Taking full ownership means RioCan no longer has to manage JV arrangements with HBC for these malls. This simplifies decision-making and aligns operational control.
- Asset Stability: Retaining ownership over established shopping centres gives RioCan steady cash flow, especially in a period where retail real estate has faced volatility.
- Market Confidence: The purchase could signal confidence in brick-and-mortar retail, or at least in well-positioned malls. Georgian Mall and Oakville Place are both anchored retail destinations in their respective cities.
- Financial Upside: Assuming mortgages and eliminating partnership complexities may allow RioCan to optimize capitalization, operations, and reposition or invest in tenant mix or property upgrades more freely.
Implications for Stakeholders
- RioCan Investors: Potential for more stable income and clearer asset valuation. The buy-out could remove risk associated with shared ownership.
- Hudson’s Bay & Creditors: This helps monetizing their stake in the JV; receivership process may distribute proceeds to creditors. For HBC, this removes some asset burdens.
- Local Communities & Tenants: Possibly smoother management, coordinated leasing, property upgrades. Tenants may benefit from clearer operational policies. There’s potential for redevelopment or re-tenanting strategies under full RioCan control.
You can also check our blogs about Government Housing Policies in 2025: What Buyers and Investors Must Know and Calgary Housing Boom: Why Developers Are Betting Big on Alberta’s Market.
Final Thoughts
This acquisition by RioCan of Hudson’s Bay’s 50% shares in Georgian Mall and Oakville Place marks a significant shift in ownership dynamics for two marquee retail centres in Ontario. By investing CAD $140.67 million, assuming substantial mortgage obligations, and consolidating control, RioCan signals that it believes in the long-term viability of well-located retail real estate.
With the deal pending court approval and a go-shop window in place, the structure ensures some competitive tension, which may benefit RioCan or yield alternate buyers. However, even if no superior bids emerge, full ownership gives RioCan freedom to manage leasing, capital investment, and tenant mix without JV constraints.
For the retail real estate market in Ontario, it underscores how ownership consolidation may be a path forward amidst financial pressures, shrinking footprints of anchor tenants, and changing consumer patterns. If RioCan successfully integrates these centres fully under its control, it has the opportunity to reinvest in modernization or tenant experience to maintain mall relevance.
From an investment perspective, this deal should be watched by other REITs and institutional players: it reflects how distressed retail assets under JV or leasehold structures might be unlocked via receiver-led processes. For consumers, the shift possibly means a renewed focus on mall amenities, upkeep, and retail options in Barrie and Oakville.
