Primaris REIT is keen to make deals before the end of 2024, says the organization’s CEO.

“We continue to be very active in discussions on several acquisitions and dispositions,” said Alex Avery during a recent conference call with analysts.

The Toronto-based REIT has a large amount of capital available for the second half, which is traditionally a time of high transaction activity in Canadian commercial real estate.

“We have the capacity for more than $1.5 billion of acquisitions and require no financing conditions in our deals,” said Avery. “This profile as a well-capitalized and credible counterparty is a real differentiator in what is currently a challenging transaction market for many.”

During the second quarter, Primaris acquired the Zehrs grocery store building and associated land at Conestoga Mall in Waterloo from Loblaws for $19.7 million. The the “tuck-in” acquisition gave Primaris full ownership of the mall site, expanding the land area to 59 acres from 50 acres.

The additional land gives Primaris the option of developing multi-family towers or other mixed-use components on the property. But Avery said the primary purpose of the acquisition was to gain complete ownership of the site.

“It’s always ideal to own the whole property and control the whole property,” he said. “This was an opportunity where Loblaws was looking to sell their store and recycle their capital into something else. And, it’s the kind of thing where the time to buy it is when it’s for sale.”

“So, they let us know that they were open to selling it, and we thought it would be a strategically logical acquisition to make.”

Retail redevelopment projects containing multi-family components have become popular across Canada. Such projects are appealing because the malls are often situated near near light-rapid transit stations, and governments at all levels are keen to incentive transit-oriented housing development.

Although Primaris does not have any specific redevelopment plants for site now, Avery noted that the mall is located next to a light-rail station. The REIT could consider a redevelopment project if a large tenant were to move out.

“It’s the kind of acquisition where if you didn’t make it, at some point in the future, you might be kicking yourself,” said Avery.

Pictured: Garden City Square in Winnipeg that Primaris REIT sold to Leyad during the second quarter

Photo: Western Millwork