Primaris REIT has agreed to acquire the 1.3-million-foot Galeries de la Capitale mall in Quebec City for $325 million in cash and stock.

Oxford Properties and the Canada Pension Plan Investment Board are selling the property. The hold equal stakes in the mall under a joint-venture.

Primaris, Oxford and CPPIB are all based in Toronto.

“This high-quality asset acquisition builds Primaris’ track record of successfully executing on its well-defined growth strategy focused on market-leading shopping centres,” the REIT said in a news release.

The agreement calls for Primaris to pay $170 million in cash, 2.5 million of the REIT’s regular units, and preferred units with a face value of $100 million. The preferred units will be converted into regular REIT units at a price of $21.86 apiece and have a contracted value of $87.6 million, subject to customary adjustments, said Primaris.

Galeries de la Capitale, has no debt liabilities.

In May, a Green Street publication reported Oxford and CPPIB’s intention to sell the asset for $300 million. Built in 1981, the mall serves 9.5 million shoppers annually and posts sales of $350 million per year, according to Green Street.

CBRE Canada, Desjardins Capital Markets, and TD Securities advised Primaris on the transaction. RBC Capital Markets acted as advisors to the vendors.

Oxford currently manages the property.

The deal is slated to close October 1.

Photo: Destination Quebec