The Cadillac Fairview Corporation Limited and Sears Canada Inc. closed a transaction pursuant to which Sears agreed to surrender its leases at five shopping centres for a total consideration of $400 million. Four of the five shopping centres – Markville Shopping Centre (Markham), Masonville Place (London), Sherway Gardens (Toronto) and the Toronto Eaton Centre (Toronto) – are located in Ontario and are owned by Cadillac Fairview. The fifth shopping centre, Richmond Centre, is located in Richmond, British Columbia and is co-owned by Cadillac Fairview and Ivanhoé Cambridge.
The master agreement governing the surrender of the five leases stipulates that Sears must vacate its stores at Masonville Place, Sherway Gardens, and the Toronto Eaton Centre by February 28, 2014, and at Markville Shopping Centre, and Richmond Centre by February 28, 2015. Sears will retain the upper four floors of its premises at the Toronto Eaton Centre for use as its head office.
Cadillac Fairview was represented by in-house counsel Sandra Hardy, Ellen Williamson and David Fenrich. External representation was provided by Davies Ward Phillips & Vineberg LLP with a team that included Gregory Howard, Ian Crosbie, Steven Martin, Jason Stapley, Daniel Peterson and Donald Stanbury.
Sears was represented by in-house counsel Franco Perugini. External representation was provided by Stikeman Elliott LLP with a team of Simon Romano and John Dow.
Ivanhoé Cambridge was represented by in-house counsel Emily Di Trani.