- What Primaris REIT has agreed to acquire Les Galeries de la Capitale shopping centre for $325m
- Why The company sees growth opportunities at the 1m sq ft property
- What’s next The deal is expected to close on Oct. 1
Primaris Real Estate Investment Trust has agreed to buy Les Galeries de la Capitale shopping centre in Québec City for $325m.
Green Street News revealed in May that Oxford Properties and the Canada Pension Plan Investment Board had listed the property.
Primaris will fund the acquisition via $170m of cash, 2.5m series A units and $100m aggregate face value of preferred limited partnership units. The deal is expected to close on Oct. 1.
Tenants at the 1m sq ft property include Hudson’s Bay, Mountain Equipment Co. and Winners. There’s also a fully renovated Méga Parc amusement park with 18 attractions adjacent to the new food court.
Les Galeries de la Capitale is BOMA best platinum certified. It has received $165m of upgrades over the last 10 years, including the relocation of Simons and the food court.
Primaris president and chief executive Patrick Sullivan said growth opportunities for the property include converting tenants from variable to net rent deals and leasing up vacant space, including Sears’ former department store.
CBRE Canada, Desjardins Capital Markets and TD Securities advised Primaris, while RBC Capital Markets’ real estate group advised the sellers.
