TORONTO, Canada - Hudson's Bay Co said on Monday it planned to open a full-line Saks store at the Hudson's Bay flagship store in the heart of downtown Toronto, as part of a plan to give its wholly owned subsidiary a retail footprint into Canada.

The Canadian retailer, which completed its $2.4 billion purchase of U.S. luxury chain Saks Inc late last year, said the approximately 150,000 square-foot, multi-level Saks will likely open in the fall of 2015 and will be co-located with the current Hudson's Bay store.

Hudson's Bay also said it has agreed to sell its downtown Toronto flagship retail complex and the Simpson's Tower located at 401 Bay Street to an affiliate of the Cadillac Fairview Corp for $650 million. The proceeds of the transaction will be used to reduce debt and invest in growth initiatives.

The company will lease the entire retail and office complex back for a base term of 25 years with renewal options for a term just under 50 years. The deal is expected to close next month.

As part of this deal, Saks has also agreed to lease space in Toronto's Sherway Gardens mall for a full-line Saks store.