HBC takes out 20 year mortgage on Saks store

TORONTO — Hudson’s Bay Company is taking advantage of locked-in low interest rates to mortgage the ground floor of its Saks Fifth Avenue flagship in Manhattan, CTV News reports. The US$1.25 billion mortgage will entail some $76 million in one-time expenses, but should then save the company some $5 million yearly in cash interest expenses. CEO Richard Baker told analysts that the move gives the company flexibility and control over the property, not ruling out a future REIT.