Toronto - Lowe's Canada has reached an agreement to acquire the leases of 13 former Target Canada locations and to purchase Target's distribution center in Milton, Ontario, for a total purchase price of about $125 million. This acquisition came as part of a real estate auction following Target's decision to cease operations in Canada.
The store sites are located across Canada, many in markets where Lowe's is underpenetrated. The distribution center in Milton, Ontario, is strategically located to serve Lowe's current and future stores. As a result of the transaction, approximately 2,000 jobs will be created in Canada.
"Since opening stores in Canada in 2007, we have developed a successful model for providing the Canadian customer with outstanding service and quality products for the home," said Sylvain Prud'homme, president of Lowe's Canada. "These additional locations will accelerate our expansion across the country, enhancing our presence in Western Canada and strengthening our base in Ontario. We are excited to bring Lowe's to more customers in more communities in Canada, further demonstrating our commitment to this important market."
The proposed acquisitions are subject to court approval and certain other customary conditions. The court-run process is expected to be completed by June 30. Wal-Mart Canada recently reached agreements to acquire one distribution center, 12 store leases and one owned property formerly held by Target Canada, for an aggregate of approximately $136 million.
Niagara Falls, NY, Niagara Falls Target
Leases not returned to landlords are to be auctioned off beginning today (May 5), continuing Wednesday and Thursday at the Toronto offices of Osler Hoskin & Harcourt LLP, the firm representing Target Canada in its liquidation proceedings. Earlier this year Target with Oxford Properties Group and Ivanhoé Cambridge to return 11 store leases to the shopping mall landlords for $138M, including locations at Square One Shopping Centre in Mississauga and Upper Canada Mall in Newmarket. All of Target’s Canadian stores have been closed since early April.
10576 Foothill Blvd Rancho Cucamonga, CA 91730-3890
New Target Canada president Schindele has his work cut out for him. More than a year in, some stores are still visibly under-stocked. At three Toronto stores that Reuters visited over the last week, there were still some empty shelves. One location had two cereal sections, and in some places boxes of Cheerios were lined up in single rows on shelves.
Cheektowaga, NY, Walden Galleria Target