Landlords tell court Ruby Liu's plans risk delays, budget overruns, and damage to prime retail spaces
The real estate arm of the Ontario Municipal Employees Retirement System (OMERS) warned that a proposed transfer of Hudson’s Bay leases to British Columbia billionaire Ruby Liu could undermine the value of its assets.
It said the deal could harm the long-term returns for more than 600,000 pension plan members.
In an affidavit filed with the Ontario Superior Court, Oxford Properties Group vice-president Nadia Corrado said a reduction in the value or stability of Oxford’s real estate portfolio would negatively impact the performance of OMERS’ investments.
She added that it would also harm the long-term interests of millions of current and future pension plan beneficiaries, as reported by The Canadian Press.
Oxford manages more than $79bn in assets and holds hundreds of properties across four continents.
Oxford, along with other major landlords including Cadillac Fairview, Ivanhoe Cambridge, KingSett Capital Inc., Morguard Investments Ltd., and Primaris Real Estate Investment Trust, is opposing Liu’s plan to take over 25 Bay leases.
The landlords argued in court filings that Liu’s proposed timelines, budgets, and retail experience make the venture unfeasible.
As per CBC, Cadillac Fairview executive vice-president Rory MacLeod described Liu’s business as “an empty shell without any guarantee of financial means” and predicted it would “run out of money before the first store opens.”
MacLeod also noted that leases at the six Cadillac Fairview malls Liu is targeting are restricted to department store use, while Liu has publicly promoted concepts involving grocery stores, educational facilities, senior centres, robotics, and live performances.
According to court documents, Liu plans to spend $325m to repair, stock, and market a new three-tiered department store chain under her own name, opening most locations within 180 days and employing 1,800 staff.
Corrado said Oxford’s June 2 meeting with Liu revealed “a troubling absence of financial transparency, commercial sophistication and basic preparedness,” noting no proof of funding, financial statements, or capital readiness was provided.
Landlords have also challenged her cost estimates.
MacLeod estimated that Cadillac Fairview properties alone would require more than $15.8m in repairs before the end of 2026, a further $5.7m by 2027, and at least $43.1m over the following decade, excluding taxes, permits, and expedited labour costs.
Corrado added that Liu’s $8m budget for renovations at Oxford’s Southcentre Mall in Calgary was insufficient and failed to account for structural repairs such as roofs.
Concerns extend to inventory and staffing.
As per KingSett Capital’s affidavit, supplier evidence filed by Liu consisted mainly of letters expressing capacity rather than firm commitments.
MacLeod said staffing projections — 1,800 employees for 28 stores, or about 64 per location — were “inadequate to support a countrywide chain.”
Ivanhoe Cambridge managing director Ruby Paola stated Liu’s retailer is “uncertain, untested and unknown” and could negatively impact mall performance “for many, many years.”
Morguard described Liu’s submissions as “surprisingly deficient and superficial and frankly, puerile” and said it preferred temporary tenants like Urban Behavior and Ardene.
Primaris reported leaving four hours of meetings with “absolutely no confidence” in her ability to launch a multi-store business in several provinces.
The Bay, which sought creditor protection in March, initially agreed to sell 28 leases to Liu, three of which have already transferred to her own malls.
The remaining 25 leases, many in high-value retail spaces with favourable rent terms, remain contested.
Liu and the Bay have until next Tuesday to respond before cross-examinations begin later in the week, with a hearing set for the end of the month.
