Ivanhoe Cambridge and Sears Canada will sell their shares in Winnipeg’s Kildonan Place to H&R Real Estate Investment Trust, which plans to assign a 50 per cent interest to Montez Income Properties Corporation. The shopping centre’s transaction, expected to close in mid-September, is estimated at $138.5 million.

“The freed-up capital from this transaction will allow us to strengthen our Canadian retail portfolio, including our Mills and Outlet Collection retail development projects across the country,” says Arthur Lloyd, Ivanhoe’s executive vice president of global investments.

Ivanhoe will receive $110.8 million for its 80 per cent share and the remaining $27.7 million will go to Sears for its 20 per cent interest. Primaris Retail REIT (a wholly-owned subsidy of H&R REIT), will manage the property once the sale is complete.

“The acquisition of this shopping centre is part of our defined property strategy to own properties dominant in their trade area throughout Canada,” says Patrick Sullivan, chief operating officer of Primas. “This is our niche and we excel at managing, leasing and developing this type of property.”