Harden and RioCan REIT have shed light on their plans to redevelop the Méga Centre Notre-Dame mall in the Montreal area following the partial sale of the site.

Rosefellow recently acquired part of the 1.2-million-acre property in Laval, Que., for $75 million with plans to develop a three-building industrial campus on the piece.

Harden and RioCan said the divested portion was less productive than the mall’s other components.

“This sale supports a broader redevelopment vision that brings new energy and economic growth to the area,” said Tyler Harden, Co-CEO of Harden.

The 50-50 partners plan to redevelop the retail section to unlock the full potential of the highly visible accessible property situated along Highway 13. The redevelopment will include a Sephora store that the new tenant has already opened and a Krispy Kreme location as the doughnut retailer moves into the mall.

Existing tenants Winners/Home Sense, Gap, Banana Republic, La Vie En Rose, Dollarama and Poulet Rouge will see their outlets undergo major expansions.

The expanded Winners/Home Sense outlet will feature a 70,000-square-foot space, becoming one of the largest stores in Quebec, said the companies.

“This transaction highlights the strength of our retail portfolio and our ability to strategically unlock value from well-located assets,” said Jonathan Gitlin, RioCan’s president and CEO. “By monetizing a less productive portion of the site at an 80% premium to IFRS value and reinvesting in its high-performing core, we have strengthened the long-term viability of Méga Centre Notre-Dame and delivered meaningful value for our unitholders.”

Harden and RioCan said Rosefellow’s industrial project will complement the centre’s retail operations and create mixed-use hub that draws value from both sectors while serving the community.

Pictured: Méga Centre Notre-Dame in Laval, Que., with illustrations of where the existing retail and future retail pieces are located.

Photo: Harden