Cadillac Fairview continues divesting major shopping centres, and Primaris REIT (PMZ-UN-T) continues acquiring them.

So it is no surprise Toronto-based Primaris has been announced as the buyer for the Promenades St-Bruno in Montreal, which was put onto the market by Cadillac Fairview earlier this year. Primaris has acquired the property for $565 million in a cash and share equity transaction.

In connection with financing the transaction, Primaris announced an offering of a total of $245 million of its units in two separate offerings. The balance of $320 million will be paid to Cadillac Fairview in cash.

“Promenades St-Bruno has all the characteristics which Primaris targets in acquisitions: over $271 million in annual sales, $917 in sales per square foot, and 154 acres of land in Canada’s second largest and growing market of Montreal, adjacent to mass transit,” said Patrick Sullivan, president and chief operating officer of Primaris, in the announcement late Monday afternoon.

“There is significant NOI growth potential including leasing up vacant and temporarily tenanted space, and optimizing former department store space.”

Promenades St-Bruno is one of numerous major shopping centres across Canada which saw its Hudson Bay department store close earlier this year when the company entered bankruptcy.

Primaris an active shopping centre buyer

Primaris has become the most active publicly traded acquirer of enclosed shopping centres in Canada during the past couple of years, with $3.3 billion of acquisitions since 2021.

“Primaris’ high quality acquisitions exceed $1.5 billion in 2025 and $3.3 billion since 2021. All of these acquisitions offer strong NOI growth potential and significant excess land,” said Alex Avery, the REIT’s chief executive officer, in the announcement. “We have materially expanded, and enhanced the overall quality of our enclosed shopping centre portfolio since 2021, driving the portfolio’s pro forma annual same store sales productivity to $791 per square foot. 

“The concurrent equity offering increases Primaris’ public float and enhances the trading liquidity of Primaris’ units, to the benefit of all unitholders.”

The offering which will finance a portion of the acquisition has two distinct components:

• $160 million of series A units at $21.40 per unit (the “Issue Price”); and
• $85 million of exchangeable preferred units at six per cent interest, in a subsidiary limited partnership, exchangeable into series A trust units.

Including an over-allotment option, a total of 11,448,599 REIT units are to be issued.

The acquisition is expected to close on Oct. 10, subject to customary closing conditions.

About Promenades St-Bruno

The two-level Promenades St-Bruno shopping centre is one of the largest and most dominant in Quebec, comprising approximately one million square feet and located in Saint-Bruno-de-Montarville, at the edge of Greater Montreal’s Longueuil area.

It contains over 200 stores and services including the CF Marche des Promenades market, which was constructed to fill space vacated by a former department store tenant. 

The mall was constructed in 1978 and expanded in 1991.

CF has been selling major shopping properties across the country as it rebalances its investment portfolios. It most recently has sold a 50 per cent stake in CF Masonville Place in London, Ont. to KingSett Capital, and the Lime Ridge mall in Hamilton for $416 million to Primaris.

Primaris is Canada’s only enclosed shopping centre-focused REIT, with ownership interests in a portfolio totalling 15.6 million square feet, valued at approximately $5.4 billion at Primaris’ share.