Sears Canada store closures expected to have little impact on RioCan

By The Canadian Press

TORONTO – RioCan Real Estate Investment Trust (TSX:REI.UN) says the restructuring of Sears Canada is expected to have a far smaller impact on its business than when Target closed up shop in Canada.

The Toronto-based real estate trust says seven of the 59 announced Sears closures are in RioCan properties and represent 0.4 per cent of the trust’s annual rental revenue.

The timing of the closures has not been finalized, but RioCan also says the closure of a Sears Outlet store in Timmins, Ont., had been previously announced and the lease is about to expire.

The other six locations are Sears Home stores in Calgary, Toronto and four smaller Ontario cities (Kingston, Orillia, Sudbury, Windsor). The longest of those leases has nearly six years left, but most of them expire within two years.

Sears Canada received court protection from creditors on Thursday and announced a plan to close 59 locations and cut 2,900 jobs.

Partners REIT (TSX:PAR.UN) said Thursday that the value of its Cornwall Square mall may be affected by the loss of the Sears Outlet store.

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