SOURCE: Phillips Edison & Company

Strategic Advisers, LLC

November 14, 2013 15:46 ET

Saks Fifth Avenue Signs Letter of Intent to Relocate Downtown Cincinnati Store to Kenwood, Ohio

Phillips Edison & Company to Provide Approximately 80,000 Square Feet to Saks at Its Kenwood Collection Super-Regional Retail Development on Interstate I-71 

CINCINNATI, OH--(Marketwired - November 14, 2013) - Saks Fifth Avenue has signed a letter of intent to relocate its downtown Cincinnati store to The Kenwood Collection, which Phillips Edison & Company is transforming from a regional destination to a super-regional retail destination drawing shoppers from three states.

The letter of intent calls for Saks to lease approximately 80,000 square feet of retail space over two levels of the building that fronts Interstate I-71. The store is preliminarily scheduled to open in the spring of 2016.

"The reinvention of The Kenwood Collection continues," said David Birdsall, president of Phillips Edison & Company's Strategic Investment Funds (SIF). "Securing a commitment from Saks Fifth Avenue is a major step in realizing our vision of creating a premiere shopping experience at The Kenwood Collection. Saks will be an anchor that allows us to attract new-to-market retailers and drive new customers to our region from the entire Midwest area."

Birdsall said The Kenwood Collection is strategically located within 90 minutes of more than five million people with $15.5 billion in spending power.

Terms of the lease are not being released. Birdsall said that the redevelopment of The Kenwood Collection, including the new Saks store, involves significant investments of private capital in the property.

"Today's announcement is tremendous news and a great opportunity for the community because it keeps Saks Fifth Avenue in Hamilton County," Birdsall said. "With Saks as an anchor, The Kenwood Collection will generate net new sales taxes and other economic benefits for the county and the entire region."

Phillips Edison & Company's Strategic Investment Fund purchased The Kenwood Collection -- formerly known as Kenwood Towne Place -- in July 2012 from a bank-lending group led by Bank of America. Adjacent to Kenwood Towne Centre in the northern Cincinnati suburb of Sycamore Township, The Kenwood Collection consists of 300,000 square feet of upscale retail and 200,000 square feet of Class A office space.

Current retail tenants include Crate & Barrel, The Container Store and Mitchell's Salon & Day Spa. Neace Lukens, one of the region's largest insurance companies, has agreed to lease one of the seven floors in the planned office tower.

The development and construction of Kenwood Towne Place was interrupted in 2008 due to financial problems encountered by the previous developer.

About Phillips Edison & Company

Since 1991, Phillips Edison & Company has specialized in the acquisition, leasing, and operation of grocery-anchored neighborhood and community shopping centers. The Company has diversified its portfolio and services to become the total retail solution for property owners, retailers, and investors. In addition to its core focus on necessity-based shopping centers, the Company manages specialized funds invested in power centers, enclosed malls, lifestyle centers, net-lease properties, and other retail real estate assets. Phillips Edison's portfolio of owned and/or managed properties currently includes more than 280 properties, totaling more than 29 million square feet in 35 states. The Company has corporate offices in Cincinnati and Salt Lake City as well as regional offices across the country. To learn more about Phillips Edison & Company, go to phillipsedison.com.

About Hudson's Bay Company

Hudson's Bay Company (HBC), founded in 1670, is North America's longest continually operated company. Today, HBC offers customers an unparalleled range of retailing categories and shopping experiences internationally. In Canada, HBC operates Hudson's Bay, Canada's largest department store with 90 locations as well as thebay.com, unsurpassed in its fashion, beauty, home and accessory designers and brands. HBC also operates Home Outfitters, Canada's largest home specialty superstore with 69 locations across the country.

In the United States, HBC operates Saks Fifth Avenue, one of the world's pre-eminent specialty retailers, renowned for its superlative designer collections and first-rate fashion expertise. Saks Fifth Avenue comprises 41 full-line stores in 22 states, five international licensed stores, saks.com, 72 Saks Fifth Avenue OFF 5TH stores and saksoff5th.com. HBC also operates Lord & Taylor, a leading department store chain with 49 full-line store locations throughout the northeastern United States and in two major cities in the Midwest, and lordandtaylor.com. Hudson's Bay Company banners provide stylish, quality merchandise with a dedicated focus on service excellence. Hudson's Bay Company trades on the Toronto Stock Exchange under the symbol "HBC".

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