Canada-based retailer Hudson’s Bay (HBC) has completed the sale of its Lord & Taylor Fifth Avenue property in Manhattan, US, to WeWork Property Investors (WPI) for a total consideration of C$1.1bn ($850m).

The deal allowed the retailer to eliminate Lord & Taylor’s C$520m ($400m) mortgage and reduce borrowings under its asset-based revolving facility.

HBC governor and executive chairman Richard Baker said: “This transaction reinforces HBC’s ability to identify undervalued real estate investments with great potential.

“We continue to strengthen our retail business and unlock the value of our real estate assets.”

HBC agreed to sell the Manhattan property to WeWork Cos for $850m in 2017.

Last August, HBC announced an extension to the purchase and sale agreement with an affiliate of WeWork Property Advisors (WPA) to sell the property.

“We continue to strengthen our retail business and unlock the value of our real estate assets.”

The retailer has also noted that WPI exercised its option to convert C$163m ($125m) under the transaction value into an equity interest in the building, which was announced earlier this month. The property will now be held by HBC through a joint venture structure.

Baker added: “We’ve fortified our balance sheet in short order. Since the end of fiscal 2017, we’ve paid down approximately C$1bn ($753.7m) in debt, providing us with the flexibility to support our business goals and advance our strategy.”

Earlier this month, HBC has also completed the sale of a 50% stake in 18 properties in Germany to a subsidiary of Signa Prime Selection for C$375m ($288m).

The retailer used the transaction amount to reduce borrowings under its asset-based revolving facility.

HBC currently operates 350 stores under various formats, including luxury and premium department chains. It has more than 45,000 employees worldwide.

Brands operated by the company in North America include Saks Fifth Avenue, Hudson’s Bay, Lord & Taylor, and Saks OFF 5TH.