B.C. billionaire Ruby Liu faced a setback in her efforts to acquire former Hudson’s Bay properties as an Ontario Superior Court ruling denied landlords from being compelled to accept her as a tenant. Judge Peter Osborne expressed concerns about Liu’s capability to fulfill the lease terms she sought. The decision, following a thorough review of extensive arguments from various commercial stakeholders, came after Hudson’s Bay filed for creditor protection in March due to significant debt. Liu aimed to purchase 25 Hudson’s Bay leases for $69.1 million, a move opposed by major landlords such as Cadillac Fairview, Oxford Properties, and Ivanhoé Cambridge.
While Liu successfully acquired three leases in B.C. malls she owns, the remaining 25 leases faced contention. Landlords raised objections citing Liu’s lack of preparedness, absence of a viable business plan, and doubts about her financial resources. Liu defended her proposal, emphasizing her success in Chinese real estate and her ownership of thriving malls as proof of her capability. The Bay and lender Pathlight Capital suggested landlords’ objections stemmed from a desire to reclaim properties for better leasing opportunities, potentially at higher rates than existing agreements.
Osborne’s decision considered the Companies’ Creditors Arrangement Act, evaluating Liu’s suitability as a tenant and the monitor’s endorsement. Monitor Alvarez & Marsal acknowledged Liu’s financial capacity but cautioned about her lack of experience and readiness for the significant undertaking. The ruling marks a crucial juncture in the ongoing dispute over the future of the Hudson’s Bay leases and the involved parties’ competing interests.