Primaris is moving quickly after a $200M equity raise announced last month, agreeing to acquire Upper Canada Mall in Newmarket for $411M.

The deal gives Primaris one of the GTA’s larger regional malls, but also a property with considerable space still to fill. The 990K-SF centre at 17600 Yonge St. is 70% occupied and about 80% committed, with much of the vacancy tied to former anchor stores.

Its smaller-format retailers generate $271M in annual sales, averaging $888 per SF. The 76-acre property also draws 6.6 million visits annually.

Connect reported in September that Primaris was evaluating more than $1B of shopping-centre acquisitions when it launched the equity offering. The raise ultimately closed at approximately $230M after underwriters exercised their over-allotment option.

At Upper Canada, Primaris has identified 263K SF of former anchor and large-format space for redevelopment and leasing. That includes 143K SF formerly occupied by Hudson’s Bay and 48K SF of former Toys “R” Us space, both under negotiation. Another 73K SF of former Sears space is committed to two national retailers.

More than six acres of excess land could also be developed or sold.

Primaris plans to fund the acquisition through existing liquidity, including proceeds from the September equity offering, cash and an expected $150M draw on its revolving credit facility.

The acquisition is expected to close by Oct. 31, lifting Primaris’ portfolio to 15.6M SF.

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