A $565-million deal will see Primaris Real Estate Investment Trust (REIT) acquire Promenades St-Bruno from Cadillac Fairview Corporation. The 1.1-million-square-foot regional mall in suburban Montreal occupies about 11 per cent of a 154-acre site that’s flagged for potential higher-density mixed-use development.

The transaction, comprised of $320 million cash and a combination of series A and exchangeable preferred units, is slated to close later this week. The mall will come into the Primaris portfolio as its third largest, based on all-store annual sales volume of more than $271 million or $917 per square foot.

“There is significant NOI growth potential, including leasing up vacant and temporarily tenanted space and optimizing former department store space,” maintains Patrick Sullivan, Primaris’ president and chief operating officer.

The latter includes 130,600 square feet that Hudson’s Bay Company exited earlier this year. Remaining large-format tenants include Simons, Winners, Sports Experts and Marks.

The mall joins than $3.3 billion in acquisitions Primaris has made since 2021, including more than $1.5 billion worth thus far this year.

“We have materially expanded and enhanced the overall quality of our enclosed shopping centre portfolio since 2021, driving the portfolio’s proforma annual same store sales productivity to $791 per square foot,” says Alex Avery, Primaris’ chief executive officer. “All these acquisitions offer strong NOI growth potential and significant excess land.”