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Canada  + Alberta & Prairies + Ontario  + Retail  | 
Photo of entrance to Southgate mall in Edmonton.

Primaris Closes on $585M in Enclosed Mall Acquisitions

Primaris REIT has closed on $585 million worth of enclosed-mall acquisitions in the Greater Toronto and Edmonton areas.

The REIT purchased a 50% interest in Southgate Centre in Edmonton and full ownership of Oshawa Centre in Oshawa, Ont., in one transaction. The deal was funded through a combination of cash and equity.

Montreal-based Ivanhoé Cambridge previously owned the two malls.

“Southgate and Oshawa Centre are two market-leading regional enclosed shopping centres with all of the property characteristics Primaris is targeting with its growth strategy,” said Patrick Sullivan, the Toronto-based REIT’s president and chief operating officer in a January news release. “Both are located in large and growing markets, with access to mass transit, and with very strong sales volumes.

“There is significant opportunity for growth at both centres, including the conversion of tenants from variable to net rent deals, leasing up vacant space and temporarily tenanted space, and optimizing former department store space.”

Primaris announced the deal’s completion Monday in a news release.

The Oshawa and Edmonton properties are among $724 million worth of retail acquisitions and divestments that Toronto-based Primaris announced in January.

The REIT is selling Sherwood Park Mall in Sherwood Park, Alta., to an undisclosed buyer for $107 million. The transaction is expected to close by February 13. Additionally, Primaris completed the sale of Edinburgh Market Place in Guelph, Ont., for $31.5 million.

The acquisitions and dispositions are expected to strengthen the REIT’s portfolio, increasing annual same-store sales productivity while maintaining financial stability.

Photo: Southgate Mall

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Primaris REITPatrick Sullivan

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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