Primaris REIT (PMZ-UN-T) will be acquiring Lime Ridge Mall in Hamilton, Ont. from an entity managed by Cadillac Fairview for $416 million in cash and equity, continuing a spree of transactions for shopping centres.

If it satisfies conditions, the acquisition will be made as $235 million in cash, $81 million in series A units of Primaris at a price of $21.40, and $100 million in six per cent exchangeable preferred units of a new subsidiary limited partnership. The mall is unencumbered.

The deal for the 793,000-square-foot mall is expected to close on June 17, subject to closing conditions.

Large tenants at the mall include Sport Chek, H&M and Urban Planet, while smaller ones are Aritzia, Sephora and Lululemon.

If the acquisition closes, Lime Ridge will be Toronto-based Primaris' fourth largest shopping centre by all store sales volume, according to the REIT.

"Lime Ridge Mall is a market leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy,” Patrick Sullivan, president and COO of the company, said in the announcement.

"There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space."

Further details of the acquisition

The proposed acquisition will allow Primaris to maintain its capital structure and financial leverage metrics within its target range, the company said.

It expects a cash net operating income between $331 million and $337 million for the 2025 fiscal year.

The potential for growth over the next few years is laid out through opportunities such as:

• redemising and leasing approximately 266,200 square feet of former anchor box space to national retailers;
• leasing approximately 53,000 square feet of temporary tenanted or vacant commercial retail unit space to tenants at market rents; and
• leveraging Primaris' scalable management platform to deploy its cost management strategy.

Approximately $20 million in improvements to the roofing, electrical systems, HVAC and parking lot pavement have been made on Lime Ridge Mall since 2015. The mall is certified as BOMA BEST Platinum.

Primaris and an affiliate of Cadillac Fairview have also entered into an agreement with a syndicate of underwriters bookrun by RBC Capital Markets and TD Securities Inc., and co-led by Desjardins Capital Markets.

The underwriters will purchase almost 8.5 million REIT units from the selling unitholder for gross proceeds of approximately $124.3 million.

The secondary offering is conditional on the closing of the acquisition. It is expected to close on or about June 20, and is subject to customary closing conditions.

Primaris' transaction-heavy 2025

Earlier this year in January, Primaris acquired interests in the Southgate Centre in Edmonton and Oshawa Centre in the Greater Toronto Area, and sold the Sherwood Park Mall near Edmonton. Combined with the closing of a sale of Edinburgh Market Place in Guelph, Ont., the transactions totalled $724 million.

In April, Primaris also sold its stake in St. Albert Centre just outside Edmonton for $60 million.

The company has made $1 billion in acquisitions of leading enclosed shopping centres in 2025 with its latest transaction, exceeding its three-year target, according to Primaris CEO Alex Avery.

"We are improving the overall quality of our enclosed shopping centre portfolio, driving the portfolio's annual same store sales productivity from $768 per square foot as at March 31, 2025 to $774 per square foot, on a proforma basis,” he added.

“The concurrent equity offering will increase Primaris' public float and enhance the trading liquidity of Primaris' units, to the benefit of all unitholders."