Artis REIT is selling a large Western Canadian retail real estate portfolio amid an ongoing debt-reduction effort.

The 17 properties comprise more than one million square feet and are located in Alberta and Saskatchewan. The assets represent one of the largest portfolios to go on the market in 2023, Reed Newnham, a principal based in Avison Young’s Edmonton office, told Connect.

Winnipeg-based Artis has assigned Avison Young to market the portfolio. BMO Nesbitt Burns is also collaborating on the disposition attempt.

“Artis have provided us with a mandate to maximize value,” said Newnham. “They are open to selling properties individually or in smaller or regional portfolios.”

The Alberta properties are located in the Edmonton area, Fort McMurray and Grande Prairie. The Saskatchewan assets are situated in Saskatoon.

“There has been interest in individual properties, regional portfolios of varying sizes, and the entire portfolio,” said Newnham.

The portfolio is 96% occupied, with 73% of the occupied area leased to such national retailers as RONA, Sobeys, Winners, No Frills and Shoppers Drug Mart. Artis is retaining its four large Calgary shopping centres: Crowfoot Corner, Crowfoot Village in the northwest and Sunridge Pointe and Sunridge Spectrum in the northeast.

Earlier this year, the REIT voiced its desire to sell certain assets to reduce debt and launched a strategic review designed to boost unit value. The REIT divested $112.7 million of assets in, and subsequent to, the third quarter.

Artis also sold five Canadian retail properties, one U.S. land parcel and eight U.S. industrial assets for a combined C$279 million in the second quarter.

BMO Nesbitt Burns is also assisting with the strategic review.