True North Real Estate Development (TNRED) has closed on its acquisition of the 1.2-million-square-foot former Portage Place mall in downtown Winnipeg.

The sale completion clears the way for the largely vacant mall’s long-awaited $650-million redevelopment to begin. TNRED announced in September that it would proceed with the project but had to wait until the sale closed.

“The project will now immediately mobilize to prepare for this monumental transformation,” said Jim Ludlow, Winnipeg-based TNRED’s president, in a news release. The sale transferred ownership from Winnipeg-based North Portage Development Corporation, Vancouver-based Premise Properties, and Spruceland Mall, a company owned by the Vancouver-based Peterson Group, to TNRED for an undisclosed amoung.

The 1.2-million-square-foot mall, situated on 6.4 acres of prime downtown land, has faced challenges in recent years due to high vacancy rates and socio-economic issues in the surrounding area. However, TNRED plans to transform the site into a dynamic mixed-use development featuring housing, healthcare, retail, and community spaces.

“We are excited to undertake the transformation of this property into a place that will drive economic and social activity and help reconnect our communities,” said Ludlow. “The redevelopment plan will be based on core deliverables in multi-family and affordable housing, healthcare, neighbourhood and community spaces, parks, retail and parking.

“The vision is further founded on principles of downtown revitalization in the core, economic reconciliation and rekindling the energy of the city’s downtown.”

The redevelopment, which will unfold in phases, begins with site preparations this year. Foundational work for key health and housing projects will start in April 2025. At the heart of the project is a 265,000-square-foot healthcare centre of excellence, which will integrate primary care, mental-health services, surgery, diagnostics, and other medical programs, including an expanded Pan Am Clinic.

In partnership with the Southern Chiefs’ Organization (SCO), TNRED will also build a 15-storey multi-residential tower under the name TN-SCO 92 Housing. The tower will provide more than 200 housing units, with up to 40% designated as affordable housing. Profits from the initiative will be reinvested into additional housing and public spaces.

“This is a day filled with excitement and hope as SCO and our partners from True North take the next steps in revitalizing downtown Winnipeg,” said SCO Grand Chief Jerry Daniels. “TN-SCO 92 Housing Inc. brings good jobs, new homes, and access to healthcare within walking distance of our First Nation citizens.”

Additional features of the redevelopment include a grocery store, community spaces, retail, and a heritage plaza and park honouring Canada’s commitment to Truth and Reconciliation.

The project has received significant backing from all levels of government. The federal government has committed $10 million to support public spaces, while the Manitoba government will lease the healthcare tower and fund medical services at approximately $77 million per year. Winnipeg’s city council approved $40 million in incentives, which include $10 million in federal housing funding earmarked for the city.

“We’re very grateful to have a committed downtown partner in True North Real Estate Development,” said Sara Stasiuk, president and CEO of the Forks North Portage, which previously owned the mall’s underlying lands and parkade from the Forks North Portage Partnership. “This should be a place for people, community, and the economy to thrive.”

Avtar Bains, president of Premise Properties, also praised TNRED’s leadership.

“The consolidation of the Portage Place lands, parking, and building under a single entity marks a pivotal moment,” he said. “:This alignment paves the way for their ambitious redevelopment plans, which we believe will significantly benefit the citizens of Winnipeg and the broader Manitoba community for generations to come.”

Opened in 1987, Portage Place has struggled to adapt to the modern retail landscape. The redevelopment aims to address long-standing challenges tied to homelessness, poverty, and addictions in the area while creating a vibrant, community-focused destination.

TNRED expects the housing component to be completed by the end of 2027, with the entire project slated for completion by the end of 2028.

“Years of planning and diligence [have] allowed our TNRED team, partners and stakeholders to envision a new community-first campus that truly serves our downtown,” said Ludlow.

True North also owns the Winnipeg Jets of the National Hockey League.

Rendering: Architecture49/True North Real Estate Development