Primaris REIT Announces $724 Million of Transactions

In This Article:

$585 Million in Leading Enclosed Shopping Centre Acquisitions; $139 Million in Dispositions; Tenant CCAA and Financing Update

TORONTO, January 22, 2025--(BUSINESS WIRE)--Primaris Real Estate Investment Trust ("Primaris" or the "REIT" or the "Trust") (TSX: PMZ.UN) announced today that it has agreed to acquire a 50% interest in Southgate Centre in Edmonton, Alberta and 100% ownership interest in Oshawa Centre in Oshawa, Ontario (the "Acquisitions"), for aggregate consideration of $585.0 million, to be satisfied by a combination of cash and equity, subject to certain conditions. The Acquisitions continue to build upon Primaris’ track record of successfully executing on its well defined growth strategy focused on market leading shopping centres in growing Canadian markets.

Primaris also announced today that it has agreed to sell Sherwood Park Mall in Sherwood Park, Alberta, for $107.0 million, and that it has closed on its sale of Edinburgh Market Place in Guelph, Ontario for $31.5 million (the "Dispositions"). The sale of Sherwood Park Mall is expected to close on February 13, 2025, subject to customary closing conditions.

Transaction Highlights of Acquisitions

Aggregate consideration of $585.0 million is comprised of:

  • $335.0 million of cash;

  • $75.0 million of series A units of the Trust ("REIT Units") at an issue price of the lower of $21.82 per REIT Unit, or the NAV** per REIT Unit disclosed in the Trust’s most recently published Management’s Discussion and Analysis ("MD&A") at the time of closing (such lower price, the "Issue Price");

  • $175.0 million of 6.25% exchangeable preferred units (the "Preferred LP Units") in a newly formed subsidiary limited partnership, which Preferred LP Units shall be exchangeable into REIT Units at an exchange price equal to the Issue Price per REIT Unit, subject to customary adjustments;

  • Southgate Centre and Oshawa Centre are unencumbered; and

  • Closing is expected on January 31, 2025, subject to the satisfaction of customary closing conditions.

"Southgate and Oshawa Centre are two market leading regional enclosed shopping centres with all of the property characteristics Primaris is targeting with its growth strategy. Both are located in large and growing markets, with access to mass transit, and with very strong sales volumes," said Patrick Sullivan, President and Chief Operating Officer. "There is significant opportunity for growth at both centres including the conversion of tenants from variable to net rent deals, leasing up vacant space and temporarily tenanted space, and optimizing former department store space."