Sears Canada on June 7 announced that it has applied to the City of Burnaby to develop its nine acres of land at Metropolis at Metrotown in what many believe will be a $1 billion mega-development.
“Given the very early stage the project is in today, there has been no determination as to any capital or other expenditure required, if any,” Sears said in a release.
The location currently includes a Sears store, a Toys R Us store, parking lot and public plaza.
“Sears is seeking approval to develop a comprehensive mixed-use project including the construction of a new Sears department store to replace the existing store,” Sears said. “The vision of the redevelopment is a major urban-infill project consisting of seven residential and office high rises along with ground-level retail space for which Sears Canada would form a joint venture with a developer.”
Other retailers are following Sears’ strategy to reduce real estate holdings and capitalize on high land prices.
For example, both Loblaw Cos. Ltd. and Canadian Tire Corp. have announced plans to spin off billions of dollars’ worth of properties into real estate investment trusts (REITs).
Sears sold leases for its Pacific Centre store along with leases for stores in Calgary and Ottawa to Cadillac Fairview last year for $170 million.
