Cadillac Fairview says it has a binding agreement to sell 50 per cent interests in two flagship shopping malls to funds operated by TD Asset Management Inc. The TD funds are investing in CF Carrefour Laval in the Greater Montreal Area, and CF Sherway Gardens in Toronto.
The funds involved are the TD Greystone Real Estate L.P. Fund and TD Greystone Real Estate Fund Inc. Financial details were not immediately disclosed.
“Acquiring a 50 per cent interest in CF Carrefour Laval provides an excellent investment opportunity for our clients,” said Jeff Tripp, managing director, real estate investments, for TD Asset Management in a release Tuesday morning.
“The shopping centre’s desirable location, strong tenant roster, intensification potential and predictable returns will make it a foundational core holding in the funds for decades to come.”
CF Carrefour Laval
CF Carrefour Laval is considered one of the premier shopping centres in Quebec.
The centre includes diverse retail mix anchored by Hudson’s Bay, Simon’s and Rona, along with other high-traffic businesses such as Apple, Harry Rosen, H&M, MEC and Zara, making the property a destination for shoppers in the Montreal area.
“CF is an important relationship for TDAM,” said Ted Welter, chief investment officer of alternative investments and managing director of TD Asset Management. “The opportunity to grow with CF at both CF Carrefour Laval and CF Sherway Gardens is extremely exciting.
“The two firms exhibit strong cultural alignment and share the same long-term approach to real estate investing. I am thrilled to announce these transactions given the dominant nature of each of the properties in their respective markets and the inherent growth opportunities that exist at each of the shopping centres.”
CF Sherway Gardens
CF Sherway Gardens is the leading retail destination in Toronto’s West End.
The property has undergone a significant redevelopment and expansion during the past five years. The $550-million, three-phase project which wrapped up in 2017 included major renovations to existing spaces and the addition of more than 450,000 additional square feet. It included a new food court and restaurants, plus retail offerings including Nordstrom, Hudson’s Bay, Saks Off Fifth, Apple and Tiffany & Co.
“We are thrilled to continue our longstanding relationship with TD Bank Group, which began in 1967 when we jointly opened the iconic Toronto-Dominion Centre in downtown Toronto,” said Duncan Osborne, executive vice-president of investments for Cadillac Fairview, in the release. “The relationship, which also includes CF Fairview Mall, continues to evolve as we build a new office for TD’s employees at 160 Front St.
“With today’s announcement we see tremendous opportunity to grow these already strong assets with a like-minded firm who shares our long-term vision and will help us deliver on our ambitious plans.”
At the CF Fairview Mall in Toronto, the partners are investing $80-million in a major revitalization which is planned to include the development of residential, hotel and office towers. They plan to transform 230,000 square feet of existing department store and other retail space to introduce new brands and restaurants, and to improve pedestrian access to the property and the nearby Don Mills subway station.
That project is slated for completion in 2023.
Both malls involved in the acquisition are among the top-25 producers per square foot in Canada, according to the 2018 Canadian Shopping Centre Study by the Retail Council of Canada. CF Sherway Gardens ranked 12th, with 1,002 in sales per square foot of space, while CF Carrefour Laval was 21st with $858 per square foot.
About Cadillac Fairview
Cadillac Fairview is one of the largest owners, operators and developers of best-in-class office, retail and mixed-use properties in North America.
The Cadillac Fairview portfolio is owned by the Ontario Teachers’ Pension Plan, a diversified global investor which administers the pensions of more than 327,000 active and retired school teachers. The real estate portfolio also includes investments in retail, mixed-use and industrial real estate in Brazil, Colombia and Mexico.
Valued at around $32 billion, the Canadian portfolio includes over 37 million square feet of leasable space at 70 properties in Canada, including landmark developments, such as Toronto-Dominion Centre, CF Toronto Eaton Centre, CF Pacific Centre, CF Chinook Centre, Tour Deloitte and CF Carrefour Laval.
About TD Asset Management Inc.
TD Asset Management (TDAM), a member of TD Bank Group, is a North American investment management firm. It operates through TD Asset Management Inc. in Canada and TDAM USA Inc. in the U.S.,
TDAM offers investment solutions to corporations, pension funds, endowments, foundations and individual investors.
Additionally, TDAM manages assets on behalf of almost two million retail investors and offers a broadly diversified suite of investment solutions including mutual funds, professionally managed portfolios and corporate class funds.
Asset management businesses at TD manage $389 billion in assets as at Sept. 30, 2019. Assets under management include TD Asset Management Inc., TDAM USA Inc. and Epoch Investment Partners Inc. (Epoch).