Primaris REIT has agreed to acquire Lime Ridge Mall in Hamilton for $416 million in cash and equity.

The deal was due to close Tuesday after being announced early Monday evening in the Eastern time zone. Primaris is purchasing the mall from a Cadillac Fairview-managed entity for $235 million in cash, $81 million in REIT units, and $100 million in preferred units exchangeable into REIT units. Lime Ridge is now Primaris’ fourth-largest property by sales volume and adds to the REIT’s strategy of expanding its portfolio of leading enclosed shopping centres in growing Canadian markets, the organization said in a news release.

“There is significant opportunity for growth at this centre, including leasing up vacant and temporarily tenanted space and optimizing former [Hudson’s Bay] department-store space,” said Patrick Sullivan, president and chief operating officer of Primaris.

The 793,000-square-foot mall sits on 65 acres of land but only covers 30% of the property, indicating that there is ample room for a mixed-use development project.

Primaris also launched a concurrent secondary offering tied to the acquisition. An affiliate of the vendor entered into a bought-deal agreement with a syndicate of underwriters to sell approximately 8.5 million REIT units at $14.70 per unit for gross proceeds of about $124.3 million. Following the offering, the selling unitholder will no longer hold any REIT units.

The offering is expected to close around June 20, subject to customary conditions and the acquisition’s completion. Proceeds relate to REIT units issued in connection with the acquisition, including those tied to preferred-unit exchanges.

Pictured: Lime Ridge Mall in Hamilton.

Photo: Cadillac Fairview