Ivanhoé Cambridge has sold a 49 per cent stake in the 1.5 million square foot Vaughan Mills shopping centre to LaSalle Investment Management as part of a “syndication process”, the Montreal-based real estate giant announced Wednesday afternoon.

Ivanhoé Cambridge did not release financial details of the transaction, but calls it “one of the largest retail transactions Ivanhoé Cambridge has made over the past few years” in the release.

Under the syndication, Ivanhoé Cambridge and LaSalle will serve as co-owners of the centre, while Ivanhoé will continue to act as asset manager. 

“We are thrilled to share the news of this enhanced partnership with LaSalle, a sophisticated player who will contribute to the continued success of this property,” said Annie Houle, head of Canada at Ivanhoé Cambridge, in the release. "Vaughan Mills is a prominent shopping centre that has stood out over the past 20 years, highlighting the strength of retail".

The Vaughan Mills shopping centre

Located at Hwy. 400 and Rutherford Rd., in Vaughan just north of Toronto, Vaughan Mills is visited by over 13 million people annually. The shopping centre has a distinctive 1.7 kilometre, one-level "race track"-style configuration, and has a retail offering comprised of both regular and outlet brands, with a strong focus on entertainment and leisure. 

The mall currently contains about 250 retailers and services, including more than a dozen major anchor-style tenants.

Vaughan Mills is 97 per cent leased, with a significant mix of international and national brands. The shopping centre underwent an expansion in 2015 and is certified BOMA Best Platinum, the highest level for this program supporting smart and sustainable building operations.

"Winning retail centres have remained quite resilient through cycles, and Vaughan Mills' leasing and occupancy track record highlights its premier location and status in the market,” said Stuart Sziklas, senior managing director and portfolio manager at LaSalle, in the announcement.

Major Canadian retail transactions

The transaction is the latest in a series of major retail sales across Canada during 2023.

Two of the largest were acquired by Toronto-based enclosed retail specialist Primaris REIT, which has shelled out $590 million for the Halifax Shopping Centre and Annex in Halifax, and the Conestoga Mall in Waterloo. The Conestoga Mall had also been previously owned by Ivanhoé Cambridge.

A number of other significant retail properties remain on the market, including the 632,700-square-foot Carlingwood Shopping Centre in Ottawa, which went on the block during the summer.

There is also a transaction pending for the downtown Winnipeg Portage Place shopping centre, which is to be turned into a residential and mixed used complex if the deal, which involves True North REIT, closes.

Ivanhoé Cambridge and LaSalle Investment Management

Ivanhoé Cambridge develops and invests in real estate properties, projects and companies around the world alongside strategic partners and major real estate funds.

Through subsidiaries and partnerships, the company holds interests in 1,500 buildings, primarily in the industrial and logistics, office, residential and retail sectors. Ivanhoé Cambridge held $77 billion in real estate assets as of December 31, 2022, and is a real estate subsidiary of CDPQ, a global investment group.

LaSalle Investment Management is a major real estate investment manager. 

It manages approximately $89 billion of assets in private and public real estate property and debt investments as of Q3 2023. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals. 

The firm sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments.