- What Galeries Laval sold for $126m at a 7% capitalization rate
- Why Fonds de Solidarité FTQ sold the property to return capital to investors
- What Next Jadco plans to redevelop portions of the site gradually
Jadco will achieve a 7% initial annual return on its $126m purchase of the Galeries Laval shopping centre, Green Street News can reveal.
The firm bought the 591,000 sq ft shopping centre, at 1545 Boulevard le Corbusier in Laval, Qué., from Fonds de Solidarité FTQ last month. RENX reported the deal at the time without the capitalization rate. Colliers brokered the off-market transaction.
Built in 1974 for $84m, the property comprises 530,000 sq ft of retail space and 61,000 sq ft of office space. The building is on 46 acres and is 98% occupied. Major tenants include IGA Extra, Marshalls, Réno-Dépôt, Tanguay and Winners.
The transaction was the second-largest retail property sale in Québec in 2024. Fonds de Solidarité FTQ, which manages $20bn of assets, had owned the shopping centre since its construction. The fund’s decision to sell was driven by its strategy to return capital to investors.
Jadco, a construction company with $1.2bn in assets under management, plans to redevelop portions of the property gradually as tenant leases expire. The site has permits for a 30-storey residential development.
The property is 17 km from downtown Montréal and 2 km from Highway 13.
