Primaris REIT to buy Upper Canada Mall for $411 million cash

Primaris Real Estate Investment Trust agreed to acquire Upper Canada Mall in Newmarket, Ontario, for $411 million in cash, extending the TSX-listed trust’s bet on market-dominant enclosed shopping centres in growing Canadian markets.

The 990,114-square-foot mall sits on 76 acres at Yonge Street and Davis Drive in York Region, with Primaris citing $888 per square foot same-store sales productivity and $271 million in annual commercial retail unit sales. Tenants highlighted in the Sept. 30 Business Wire release include Apple, Aritzia, Lululemon, Uniqlo, Sport Chek and Winners. Primaris said the deal should be modestly accretive to annualized fully diluted FFO per unit and expects closing by Oct. 31, 2026, subject to customary conditions and any required regulatory approvals.

CEO Alex Avery called the asset “exactly the type” Primaris is built to own, while COO Patrick Sullivan pointed to leasing, asset management and operating efficiencies as NOI growth levers. The REIT also flagged upside from lease-up of vacant former anchor space — including former Hudson’s Bay and Toys R Us boxes under negotiation — and more than six acres of excess land that could support pad development or monetization. Financing is expected from existing liquidity, including proceeds from a Sept. 22 equity offering, cash on hand and about $150 million drawn on its revolving credit facility.

For GTA shoppers and retail landlords, the purchase underscores renewed institutional appetite for productive enclosed centres even as e-commerce reshapes traffic patterns — with Primaris saying proforma portfolio same-store sales productivity would rise to about $829 per square foot after closing.

Sources: Business Wire via Morningstar; IPE Real Assets.