Target Closes Deal for Zellers Leases
September 23, 2011,
MINNEAPOLIS-Target has finalized the real-estate portion of the transaction that will give it a presence in Canada in the next two years.
The mass-merchant retailer has selected 84 additional leases for Zellers locations, bringing the total number of selected leases to 189. From this second group, Target has acquired the leasehold interests for 29 locations, the vast majority of which will open as Target stores beginning in 2013. The remaining leases have been, or will be, sold to other Canadian retailers or back to the landlords.
Target had initially announced that it would purchase the leasehold interests of up to 220 Zellers sites in January, for approximately $1.845 billion. The company chose the initial 105 leases, spanning 10 provinces, in May.
The 84 leases in this morning's statement include the 39 leases for which Target transferred the rights to Walmart in June. As part of that transaction, Target acquired the lease to one of Walmart's vacant properties, which will open as a Target store.
Target plans to open from 125 to 135 stores in Canada in 2013 and 2014. Until then, the selected sites will be subleased to Zellers and will continue to operate as Zellers stores.