Hudson’s Bay Co. of Toronto, the owner of the Saks Fifth Avenue chain, plans to securitize a $1.25 billion loan secured by the ground beneath the retailer's 611 Fifth Ave.,650,000-square-foot flagship store in midtown Manhattan.

The 20-year mortgage loan is based on an independent appraiser’s assessment of the property’s value at $3.7 billion. In 2013 Hudson's acquired the entre chain for $2.9 billion. The loan pays only interest for its entire 20-year term and was underwritten by Bank of America, N.A., Morgan Stanley Bank, N.A., Goldman Sachs Mortgage Co. and Bank of Nova Scotia, in December last year.

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