The Fonds de solidarité FTQ has sold the Galeries Laval shopping centre for $126 million to Jadco Corporation, according to multiple reports.

The transaction marks a significant step in the ongoing transformation of Laval’s downtown area, where the mall is located near the Montmorency metro station, according to La Presse.

The buyer, Laval-based Jadco, has plans to redevelop the site with a mix of housing and commercial spaces.

“The idea is to meet with the City of Laval and have a clear vision of what it wants to develop,” said André Doudak, CEO of Jadco, in an interview with La Presse.

Although Jadco has yet to finalize specific plans for the site, Doudak emphasized the importance of careful planning.

“A site like this deserves a lot of thought. We are really facing a blank page for the moment,” he told La Presse.

The redevelopment project is expected to take up to 15 years to complete.

“We are not taking this lightly,” Doudak told La Presse.

The Galeries Laval, a traditional shopping centre surrounded by large parking lots, occupies a central location in Laval’s designated city centre. The municipality has ambitious plans to densify the area and create a “strong and dynamic core,” Jonathan Lévesque, a city spokesman, told La Presse.

In 2022, the city adopted a specific urban planning program to guide private developments in the sector towards a unified vision. The program aims to transform the area into a vibrant urban hub.

The acquisition was financed by Scotiabank, Fiera Capital, and the Business Development Bank of Canada, according to La Presse. However, the transaction drew attention from the Competition Bureau due to Jadco’s extensive portfolio, which includes 4,000 rental units, primarily in Laval, Montreal, and Ottawa.

For the Fonds, the sale marks the end of a controversial chapter in the history of Galeries Laval. The mall was originally acquired as part of the fund’s former partnership with Tony Accurso, a businessman who later served a prison sentence for corruption in Laval, La Presse reported.

The Fonds purchased Galeries Laval in 2010 for $85 million in a deal that raised eyebrows due to the high price tag, which was double the municipal assessment at the time. Despite the initial controversy, the Fonds now considers the sale a success.

“It’s a good transaction for shareholders,” Patrick McQuilken, a Fonds spokesman, told La Presse. “It’s a profitable transaction.”

ng can increase by as much as 45% in the 10th year following construction.

Photo: Couchon-Boeuf