In the late-afternoon on Monday, Toronto-based Primaris REIT (PMZ.UB) announced that it had acquired Lime Ridge Mall in Hamilton, Ontario from "an entity managed by Cadillac Fairview" — the real estate subsidiary of the Ontario Teachers' Pension Plan — in what will likely be one of the largest commercial real estate transactions of the year.
In a press release, the REIT said it was acquiring a 100% ownership interest in Lime Ridge Mall for $416.0 million. The price is comprised of $235.0 million in cash, $100.0 million of 6.00% exchangeable preferred units, and $81.0 million of series A units of the REIT issued at a price of $21.40. The property is currently unencumbered and Primaris says the transaction is expected to close on June 17.
Lime Ridge Mall was owned by Ontrea Inc., according to court documents pertaining to the insolvency of Hudson's Bay, and it is also a subsidiary of the Ontario Teachers' Pension Plan.
The mall is located at 999 Upper Wentworth Street, near the intersection with Lincoln M. Alexander Parkway and in proximity to the QEW and Highway 403. Lime Ridge holds the title as the largest mall in Hamilton, which is the ninth-largest population centre in Canada. The property itself sits on 65 acres of land, about 30% of which is covered by the mall.
The shopping centre houses approximately 793,000 sq. ft of space, with large-format tenants including Sport Chek, H&M, and Urban Planet. Other notable tenants include Aritzia, Sephora, Shoppers Drug Mart, Browns, and JD Sports.
An interior photo of the Lime Ridge Mall in Hamilton, Ontario. / Cadillac Fairview
According to Primaris REIT, Lime Ridge Mall recorded a sales productivity of $841 per sq. ft in same-store sales and $251 million in total CRU sales volume in the 12-month period ending on December 31, 2024. The latter number makes Lime Ridge Mall the fourth highest-performing property in the REIT's portfolio, according to an investor presentation published by Primaris today.
In terms of leasing, Primaris says the mall currently has a long-term in-place occupancy rate of 58.5%, an in-place occupancy rate of 61.3%, and a committed occupancy of 62.3%, with a weighted average lease term (WALT) of five years. It is unclear how those numbers will be affected by the departure of Hudson's Bay, who occupied a large two-level space that spanned 125,307 sq. ft, according to Cadillac Fairview's floorplans for the property. The announcement today makes no mention of Hudson's Bay.
The property is also home to the Lime Ridge Mall Transit Terminal, which contains two parallel bus platforms separated by a four-lane interior ring road in the mall parking lot. According to the City of Hamilton, the terminal was constructed in 1997, services five transit routes, and is currently in the process of being redesigned and redeveloped. Construction is expected to commence sometime this year.
Primaris also says that $20 million in capital improvements to the mall have been completed since 2015, including upgrades to the roof, electrical systems, HVAC, elevators, several retail units, and the parking lot. The Lime Ridge Mall has also received BOMA Best Platinum certification.
An interior photo of the Lime Ridge Mall in Hamilton, Ontario. / Cadillac Fairview
"Lime Ridge Mall is a market leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy," said Primaris REIT President & COO Patrick Sullivan. "The mall produces over $251 million in annual sales, $841 in sales per square foot, and is located in a large and growing market, with access to mass transit. There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space."
As reported by STOREYS in late-May, Primaris REIT is in the process of optimizing former department stores spaces within a group of its properties following the exit of Hudson's Bay, with the acquisition of Lime Ridge Mall now adding to the list.
"With the acquisition of Lime Ridge Mall, Primaris' 2025 acquisitions total $1 billion of leading enclosed shopping centres, exceeding our three-year target," added 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."
In January, Primaris REIT announced it had acquired a 100% ownership interest in the Oshawa Centre in Oshawa, Ontario and a 50% interest in the Southgate Centre in Edmonton, Alberta for a total of $585 million. Both stakes were acquired from Montreal-based Ivanhoé Cambridge, the real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ), the pension fund that manages investments on behalf of the Quebec Pension Plan.
Since December 31, 2021, Primaris REIT has acquired over $2.8 billion of large format shopping centres across Canada.
