
Primaris to Acquire, Divest $724M Worth of Retail Assets
Primaris REIT has agreed to buy and sell $724 million worth of retail assets, including interests in two major shopping centres, in the Greater Toronto and Edmonton areas.
The REIT has agreed to purchase a 50% interest in Southgate Centre in Edmonton and full ownership of Oshawa Centre in Oshawa, Ont., for a total of $585 million. The deal will be funded through a combination of cash and equity and is expected to close on January 31, pending customary conditions.
Ivanhoé Cambridge has 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 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.”
Meanwhile, Primaris 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, the REIT has completed the sale of Edinburgh Market Place in Guelph, Ont., for $31.5 million.
“The transactions announced today improve the overall quality of our enclosed shopping centre portfolio, driving the portfolio’s annual same store sales productivity from $684 per square foot as at September 30, 2024 to $736 per square foot, on a pro forma basis,” said Primaris CFO Rags Davloor.
“Consistent with prior acquisitions, these properties enhance the REIT’s value proposition with retailers, and offer a significant income-growth opportunity consistent with the growth we see ahead for our existing assets.”
The acquisitions and dispositions are expected to strengthen the REIT’s portfolio, increasing annual same-store sales productivity while maintaining financial stability.
Photo: Ivanhoé Cambridge
- ◦Sale/Acquisition