Primaris Real Estate Investment Trust has purchased Hamilton’s Lime Ridge Mall from Cadillac Fairview for $416 million in one of the largest retail property transactions in the region this year.
The deal was announced in a press release minutes before markets closed on Tuesday afternoon (June 16).
The transaction is structured as $235.0 million in cash, $81.0 million in REIT units at $21.40 per unit, and $100.0 million in 6.00 percent exchangeable preferred units in a new subsidiary limited partnership.
Primaris REIT markets itself as Canada’s only enclosed shopping centre-focused real estate investment trust. With this acquisition, Lime Ridge Mall becomes the REIT’s fourth-largest shopping centre by sales volume, according to the press statement.
Primaris stated in January that Southgate Centre in Edmonton is its “largest shopping centre measured by all store sales volume and same store sales productivity” while Oshawa Centre ranks third.
The release states Lime Ridge Mall “produces over $251 million in annual sales, $841 in sales per square foot” with 8.7 million annual visitors and a 58.5 percent long-term in-place occupancy rate. The mall’s sales productivity significantly exceeds Primaris’ portfolio average of $768 per square foot.
Major retailers at Lime Ridge include Old Navy, H&M, Sport Chek, Sephora, Lululemon, and Canada’s largest Tesla retail and service location.
Investor slides released with the announcement indicate Primaris acquired the 65-acre property to leverage the “excess lands” (the parking lots) and the on-site HSR transit hub.
Primaris Sells Excess Land, Does Not Do Residential Development
Primaris was created in 2021 as a spin-off of H&R Real Estate Investment Trust with a mandate “focused on owning and managing enclosed shopping centres in Canada.” Residential and mixed-use development is not part of its core business model.
Instead, the REIT’s strategy involves selling excess land to residential developers. In a recent statement during the Hudson’s Bay Company bankruptcy proceedings, Primaris wrote the REIT was reviewing “the potential sale of excess lands [vacated by HBC] for multi-residential, hotel, or other high density uses.”
The Lime Ridge Mall acquisition announcement makes no mention of Cadillac Fairview’s submitted plans to build two 12-storey residential towers on the north portion of the property.
Hamilton Shopping Mall and Plaza Redevelopments
Greater Golden Horseshoe area shopping mall and plaza properties are attractive investments for REITs and pension funds because Ontario’s Provincial Planning Statement states municipalities must permit intensification on large commercial plaza sites.
Many projects are already approved in Hamilton, including near Lime Ridge at the former Wal-Mart plaza at 499 Mohawk Road East, which is approved for 1,850 residential units including three 20-storey buildings.
Eastgate Square at 75 Centennial Parkway North is approved for 4,234 residential units, the commercial plaza at 200 Centennial Parkway North is approved for 1,116 units, and 399 Greenhill Avenue is approved for 546 units.
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Published: June 16, 2025
Last updated: June 16, 2025
Author: Joey Coleman
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