- What Leyad announced its acquisition of Niagara Pen Centre
- Why Green Street News reported in April that the firm was buying the mall for $140m
- What next Leyad will explore mixed-use redevelopment of the site
Leyad has confirmed its $140m acquisition of Niagara Pen Centre.
Green Street News reported in April that the firm was in the process of purchasing the mall from Investment Management Corp. of Ontario at a first-year capitalization rate of 7%.
At 221 Glendale Avenue in St. Catharines, Ont., the 1m sq ft mall is the largest in the Niagara region. Leyad plans to maintain the mall’s position as a commercial anchor in the area but will “actively” explore the mixed-use redevelopment potential of the 2.8m sq ft site.
Toronto-based IMCO, an independent corporation that invests on behalf of Ontario’s public-sector institutions, began mulling the sale of Niagara Pen Centre in early 2024. Green Street News reported that market pros had pegged the value at $125m, translating to a first-year cap rate of 8.5%.
Niagara Pen Centre was completed in 1957 and underwent a $13m renovation in 2011. There are 5,000 parking spaces. Anchor tenants include Sephora, Walmart and Zehrs. Current retail sales are $650/sq ft, Leyad said.
“This is a transformational acquisition for Leyad,” Henry Zavriyev, president and chief executive, said.
“The Pen Centre is not only a premier retail destination serving over 8 million visitors annually, but also a site with extraordinary long-term development potential. We see the opportunity to bring thousands of multi-residential units to this already-thriving hub, adding immense value to the community.”
Leyad is a real estate investment and development firm based in Montréal. The company has been actively acquiring, picking up South Hill Place in Saskatchewan for $19m in December and St. Albert Centre in Alberta for $60m in March, according to Green Street’s Sales Comps Database.
