The Healthcare of Ontario Pension Plan (HOOPP) and Morguard Real Estate Investment Trust have acquired three Canadian shopping centres for more than $500 million.

The properties — two in Ontario and one in B.C. — are being purchased from the Canada Pension Plan Investment Board. The acquisition is expected to close around Dec. 12, 2013.

HOOPP will have 100 per cent freehold interest in the Ontario properties – Intercity Shopping Centre in Thunder Bay and the New Sudbury Shopping Centre. Morguard will take 100 per cent interest in the Pine Centre Mall in Prince George, B.C.

The 460,349-square-foot Intercity Shopping Centre is anchored by Sears and Target. Built in 1982, it was renovated and expanded from 1994–1996.

The New Sudbury Centre has 567,673 square feet of retail and is anchored by a Wal-Mart Supercentre and Sears. It was built in 1956, and its most recent renovation wrapped up in 2005.

“Market dominant retail assets, such as these two commercial shopping malls, align with our commitment to pursue high-quality assets for HOOPP’s real estate portfolio,” says Michael Catford, vice-president of real estate. “Real estate is an important part of how HOOPP delivers on the pension promise for its members.”

Morguard’s acquisition, Pine Centre Mall, is a 475,177-square-foot shopping centre, anchored by Target and Sears. Its most recent renovation and expansion occurred in 2008.

“Well occupied and dominant regional shopping centres in performing markets complement our established retail portfolio,” says Rai Sahi, chairman and CEO of Morguard. “Retail is our largest asset class and upon closing, Morguard will manage more than 18 million square feet of retail across its owned and managed retail assets.”

Morguard will manage the three properties, adding approximately 1.5 million square feet of retail space to its managed portfolio.