SEARS CANADA SELLS ITS YORKDALE AND SQUARE ONE STORE LEASES

[Image Source]

Update: Oxford Properties purchased the Yorkdale and Square One leases for $191 million. Stores will close in March, 2014. Oxford also paid Sears $1 million for the option of buying-out the 230,000+ square foot Scarborough Town Centre Sears lease for $53 million. That closure could happen within the next 5 years. [Press Release]

A source tells us that Sears Canada has just sold two more of its store leases to its mall landlords. This time the landlord is Oxford Properties, and the mall locations are the Yorkdale Shopping Centre in Toronto and Square One Shopping Centre in Mississauga.

Yorkdale Shopping Centre, Toronto

The Yorkdale Sears is about 190,000 square feet and is located in the western portion of the mall. Nordstrom has already announced that it will open a 188,000 square foot Yorkdale store as part of an eastward mall expansion, so the Yorkdale Sears space will either be reconfigured for multiple retailers, demolished then redeveloped, or be leased to another anchor tenant. La Maison Simons has been in talks with the landlord and could occupy some, though likely not all of the space. Simons is seeking Toronto store space in the 80,000-120,000 square foot range. 

Square One Shopping Centre, Mississauga

Square One's Sears store is about 145,000 square feet and it is located at the north-end of the mall. Nordstrom could become a possible replacement anchor for the Sears space, though Nordstrom has already secured a 138,000 square foot space at nearby Sherway Gardens mall that will open in 2016. Again, La Maison Simons could possibly occupy the Sears space, though Simons could also go in the expanded area near the recently announced 120,000 square foot Holt Renfrew. Holts will be located in an expanded southern portion of Square One that will see Old Navy and neighbouring retailers demolished. 

Reader Eric Lewis has noted that the Square One Sears space could be utilized in a proposed mall expansion/reconfiguration at that end of the mall. 

We'll keep you updated on these interesting Sears developments. Given that Sears is still open to selling its Canadian store leases, we could see the way paved for more Nordstrom stores, including one in the much coveted Sears space at the Toronto Eaton Centre. 

Thank you to our source "K.W." for notifying us of this story. 

[Sears Canada website]

[Square One Shopping Centre website]

[Yorkdale Shopping Centre website]