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Primaris REIT to acquire Les Galeries de la Capitale for $325 million

Les Galeries de la Capitale (Image: Oxford Properties)

Primaris Real Estate Investment Trust (“Primaris”) announced an agreement to acquire Les Galeries de la Capitale in Quebec City from Oxford Properties for a total consideration of $325 million. The transaction, which includes cash, trust units, and preferred units, is part of Primaris’ continued growth strategy of acquiring market-leading shopping centres across Canada.

The deal is structured with $170 million in cash, approximately 2.5 million series A units of the Trust (valued at $21.86 per unit), and $100 million of exchangeable preferred units. The series A units can be substituted with cash if Primaris elects to pay the contracted sum of $34.1 million, based on the unit price of $13.55. The transaction is expected to close on October 1, 2024, pending customary closing conditions.

MEGA PARC (PHOTO: LES GALERIES DE LA CAPITALE)

Strategic importance of Les Galeries de la Capitale

Les Galeries de la Capitale is a super regional enclosed shopping centre located in Quebec City, which is Canada’s seventh-largest population centre. The property sits at the intersection of Highways 40, 73, and 740, providing accessibility and visibility with over 4,100 feet of frontage along Boulevards Lebourgneuf and des Galeries. Covering 91 acres of land with 1,015,000 square feet of leasable space, the shopping centre has a 26% site coverage, offering room for future development opportunities It’s a trend seen with mall landlords across the country who are adding density to unlock more asset value.

With an impressive 96.4% in-place occupancy, Les Galeries de la Capitale generates same-store sales of $761 per square foot and recorded total sales volume of $219 million as of May 31, 2024. The mall has benefited from a significant $165 million redevelopment over the past decade, which included the relocation of La Maison Simons and the renovation of the food court, as well as upgrades throughout the centre. A notable highlight is the fully renovated and redesigned Méga Parc, an indoor amusement park with 18 attractions located adjacent to the new food court.

Patrick Sullivan, President and COO of Primaris, stated, “Les Galeries de la Capitale exemplifies the type of property we are targeting in our growth strategy. Its strategic location, excellent accessibility, and strong tenant mix make it a valuable addition to our portfolio.” He added that the mall’s prominent location along major highways and proximity to one of the region’s busiest bus terminals, with over 400 buses per day, further enhances its attractiveness.

PHOTO: LES GALERIES DE LA CAPITALE VIA FACEBOOK

Potential for income growth and enhanced operations

Primaris says it sees significant potential for net operating income (NOI) growth at Les Galeries de la Capitale, which mirrors the REIT’s broader strategy of optimizing underperforming assets. This includes converting tenants from variable rent agreements to net rent deals, as well as leasing out approximately 110,000 square feet of vacant space. Key vacancies, including the former Sears department store, offer significant opportunities to attract strong tenants and drive higher market rents.

Primaris plans to integrate the property into its scalable, full-service management platform, leveraging cost management strategies and operational efficiencies to further increase income.

Hudson’s Bay at Les Galeries de la Capitale (Image: Oxford Properties)

Financial and strategic implications

Rags Davloor, Primaris’ Chief Financial Officer, emphasized the financial prudence of the transaction. “This acquisition, our first in 2024, aligns with our commitment to maintaining industry-leading credit metrics and a well-capitalized balance sheet,” Davloor said. He also highlighted that Primaris remains a strong transaction counterparty in a market where many others face financing challenges. The deal is expected to be modestly accretive to the Trust’s funds from operations (FFO) on a per-unit basis.

Upon closing, Les Galeries de la Capitale will become the second-largest shopping centre in Primaris’ portfolio by sales volume, following Halifax Shopping Centre. It will rank ahead of other key properties like Conestoga Mall in Waterloo, and Orchard Park Shopping Centre in Kelowna.

Primaris anticipates same-property cash NOI growth of 3.0% to 4.0% in 2024, with expected total cash NOI for the fiscal year ranging between $273 million and $276 million, up from $227 million in 2023.

Quebec City’s economic strength

Quebec City’s economic landscape provides a strong foundation for the continued success of Les Galeries de la Capitale. With an anticipated population growth of 6.6% over the next decade, the city offers a stable environment for retail. Quebec City also boasts a low unemployment rate compared to the national average, supported by a diverse economy anchored in public administration, education, healthcare, and technology.

The presence of Université Laval, a major player in Quebec’s growing tech ecosystem, further contributes to the region’s economic resilience. Advancements in fields like artificial intelligence, software development, and digital media create additional opportunities for long-term growth in the area, according to Primaris.

Primaris’ portfolio expansion

With this acquisition, Primaris strengthens its position as a dominant player in the Canadian retail property landscape. CEO Alex Avery noted that the REIT’s ability to acquire high-quality assets, while maintaining a best-in-class capital structure, has attracted investment from five of Canada’s ten largest pension funds. These funds have sold market-leading shopping centres to Primaris and taken back equity and convertible preferred equity investments in the Trust.

The acquisition of Les Galeries de la Capitale aligns with Primaris’ strategy of focusing on large, enclosed shopping centres in mid-sized Canadian markets. Avery expressed confidence in the property’s potential, saying, “This acquisition enhances our value proposition with retailers and offers substantial income growth opportunities, consistent with the growth we anticipate across our portfolio.”

BC retailers struggle as public safety concerns escalate

London Drugs is among many businesses grappling with escalating public safety issues in British Columbia, according to a recent province-wide survey.

A comprehensive study commissioned by Save Our Streets sheds light on the growing BC public safety concerns, particularly in the retail sector. The survey, conducted by Research Co., paints a troubling picture for retailers across the province.

An overwhelming 67 per cent of respondents reported an increase in shoplifting over the past three years. This surge in retail crime is accompanied by other worrying trends:

  • 60 per cent noted a rise in random vandalism, such as broken windows
  • 45 per cent observed an increase in violence against retail employees
  • 44 per cent reported consumer-facing employees leaving positions due to safety concerns

The findings highlight the significant challenges facing retailers like Hudson’s Bay and Best Buy in maintaining safe and secure shopping environments.

Impact on consumers and retail operations

The ripple effects of these safety issues extend beyond the retailers themselves. A staggering 80 per cent of survey respondents believe that retail crime leads to higher prices for consumers, indicating a widespread understanding of the economic impact of these issues.

Jess Ketchum, Co-Founder of Save Our Streets, commented on the findings: “The survey results clearly show that British Columbians recognize the far-reaching consequences of retail crime and public safety issues. It’s not just about the immediate losses; it’s about the long-term sustainability of our retail sector.”

Calls for multi-faceted solutions

In response to these challenges, British Columbians are calling for action:

  1. Government Intervention: 87 per cent want all levels of government to do more to prevent violence against retail employees.
  2. Crime Prevention: 85 per cent support increased efforts to prevent random vandalism and 81% back stronger measures against shoplifting.
  3. Employee Protection: 83 per cent believe more should be done to address the issue of employees leaving consumer-facing positions due to safety concerns.

Broader public safety context

The retail-specific concerns are part of a larger tapestry of public safety issues in BC:

  • 55 per cent of respondents reported an increase in overall criminal activity in their communities
  • 50 per cent fear for their own safety, with slightly higher percentages concerned for friends (52 per cent) and family (57 per cent)
  • 88 per cent believe additional crimes go unreported, primarily due to lack of confidence in the justice system

Support for Innovative Approaches

The survey reveals strong public backing for new strategies to address these interconnected issues:

  • 87 per cent support modifying the bail system to keep repeat offenders in custody while awaiting trial
  • 86 per cent back increased police presence in areas where drugs are being sold illegally
  • 70 per cent support government financial assistance for businesses affected by crime and anti-social behavior

Additionally, there’s significant support for addressing underlying issues:

  • 83 per cent back investment in new facilities for people with mental health problems
  • 81 per cent support creating more spaces for drug rehabilitation
  • 73 per cent favor allowing individuals charged with minor crimes to avoid fines if they complete detoxification programs

As British Columbia approaches its provincial election, these findings underscore the urgency of addressing retail crime and public safety in political platforms and policy decisions.

Save Our Streets plans to host a Communities Driving Change Forum in Vancouver, bringing together retail leaders, experts, and community representatives to explore comprehensive solutions to these pressing issues.

Related Article: Retailers in British Columbia Demand Government Action as Crime and Safety Concerns Reach Crisis Point

Skilled labour shortages persist for Canadian small businesses: CFIB report

Photo by Edmond Dantès

The share of firms reporting skilled labour shortages (40 per cent) is at its lowest since June 2021 and overall trending downwards since its peak at 55 per cent in May 2022, according to the September 2024 Canadian Federation of Independent Business (CFIB) Monthly Business Barometer.

The CFIB also reported that the share of firms reporting shortages of unskilled or semi-skilled labour (at 16 per cent) is also at its lowest since the beginning of 2021 and overall trending down albeit it had hovered close to its historical average of 20 per cent since March 2024.

The report said only 12 per cent of firms are planning to hire in the short term. This fresh data from the small and medium-sized (SME) sector (representing more than 99 per cent of employers and 38 per cent of the workforce in the private sector) indicates that the rapidly cooling labour market has continued to lose strength this month, added the CFIB.

Small firms plan to raise wages and prices by an average of 2.3 per cent in both cases, also a low point in over two years and the share of businesses indicating that insufficient demand is limiting their growth is at 53 per cent this month and a full 9 points over its historical average, according to the report.

Simon Gaudreault

“Labour market indicators clearly show employers are on the brakes. At the same time, price and wage plans are on par and overall are trending downwards, which is good news,” said Simon Gaudreault, Chief Economist and Vice-President of Research at CFIB.

“The small business optimism index has slightly dropped this month, a disappointing result that is further extending the stretch of subpar confidence displayed by Canadian entrepreneurs. There’s ample room for improvement in the coming months, with a monetary policy that is likely to remain overly restrictive for a while (no matter how fast the Bank of Canada cuts interest rates) and with high costs that continue to exert pressure on small businesses. Our data support a continuation, in fact likely an acceleration, of interest cuts by the Bank of Canada.”

The CFIB said the long-term small business confidence index shaved off two index points, reaching 55.0 in September and has now been below its historical average (60) for 27 months in a row. 

Andreea Bourgeois

It said shares of small businesses struggling with numerous cost constraints, such as insurance (68 per cent), taxes (67 per cent), and wages (67 per cent), remain elevated. These indicators have been above their historical averages for at least over a year. 

“As businesses are dealing with reduced demand, lower revenues and higher costs, they’re less likely to hire. Instead, they’re hanging on to their existing employees. A lot of SME employers are currently looking for clearer signs of economic improvement before they can make growth-fueling decisions again,” said Andreea Bourgeois, Director of Economics at CFIB.

Michael Kors debuts new store at Montreal’s Royalmount Mall (Photos)

Photo courtesy of Michael Kors

Upscale brand Michael Kors has opened a new lifestyle store at the Royalmount shopping centre in Montreal.

In a news release, the company said the Royalmount is an expansive new development in midtown Montreal that combines luxury shopping, restaurants, parks and experiential activities.

“This new Michael Kors store opens its doors as part of the first phase of the Royalmount project’s grand opening. The new store features a unique, custom design that integrates luxurious materials with a timeless palette that complements the Royalmount’s sophisticated atmosphere,” it said.

Photo courtesy of Michael Kors

“The 2,356-square-foot store carries a luxe selection of MICHAEL Michael Kors ready-to-wear, handbags, footwear, watches, jewelry, sunglasses, and small leather goods. Luxe finishes, from Calacatta paonazzo to brown marble and stucco, reflect the brand’s aesthetic of laid-back luxury with an emphasis on ease and sophistication.

“The Royalmount storefront boasts large, open windows that provide full sightlines into the store, inviting customers to step inside and explore the carefully curated accessory and apparel vignette at the front of the boutique. The interior features high ceilings and a transparent wood feature wall that serves as a focal point for the store. A watch and jewelry vitrine sits in front of the feature wall. On the other side, customers will discover a minimalistic shoe salon with brown marble walls and linear shelves, showcasing the season’s must-have footwear. The setting invites customers to browse, shop, and enjoy the brand’s exceptional personal styling and service.”

Photo courtesy of Michael Kors

Roche Bobois continues Canadian expansion with new Toronto store (Photos)

Photo courtesy of Roche Bobois

Roche Bobois, the renowned French luxury furniture brand, has opened its second store in Toronto to mark the brand’s 50th anniversary in Canada. 

This new space, in the Castlefield Design District, a go-to spot in the city for interior designers, spanning an impressive 4,742 square feet, is set to redefine the luxury furniture shopping experience in the heart of the city, said the retailer.

Pierre Berardo

Pierre Berardo, the General Manager at Roche Bobois – Director of the USA and Canadian subsidiaries, said the company now has eight locations in Canada, including seven corporate stores and one franchise in Quebec City.

Recent openings include the store in Toronto’s Castlefield Design District and takeovers in Vancouver and Calgary.

There are three showrooms in Montreal, one in Quebec City, two stores in Toronto, Vancouver and Calgary.

He said the company has been expanding in recent years by opening new showrooms or by taking over new franchises.

By opening a second store in Toronto, Roche Bobois aims to extend its reach to a broader audience while further solidifying its position as a premier destination for luxury furniture in this major Canadian city.

Photo courtesy of Roche Bobois

“We are planning to open in Royalmount in Montreal, which is also a big investment and a big move for us,” said Berardo.

“What we believe in Toronto is that it’s a bit, maybe not like New York, but definitely it has the potential to have more than just one showroom. To give you an example, in Manhattan, just Manhattan, we have three stores. We are the only furniture brand with three stores in Manhattan. We believe that Toronto is two maybe three showrooms in order to really cover the whole potential of this market. Because, as I’m sure, you know, Toronto, it’s a lot of traffic.”

He said many furniture brands are located in the area the retailer has opened its latest store in Toronto and it’s also close to the Yorkdale Shopping Centre.

“Definitely a lot of designers shop in this area. So I will say an affluent area, plus a designer’s destination, makes really the perfect mix to open a location,” he added.

Berardo said the Canadian market is similar to the U.S. with different provinces and different markets. 

“But if you take, for example, Toronto, I’ve been living in New York for 15 years. It gives me really a vibe of New York with very strong energy. It’s very hard to find a room in an hotel where you don’t have noise in the morning because everything is under construction, where you look the number of skyscrapers, residential condos, residential units that have been building. It’s very impressive,” he said. 

“And so Toronto, for me, it’s like a small New York, or little more, like an energy like New York. This is what it gives me. As far as Toronto, it has a very strong economy, a lot of headquarters real estate, which is still doing pretty well. So all those KPIs are very good for us. Because really, in the furniture business, we follow the stock exchange and we follow the real estate. If real estate does well, if the Stock Exchange does well, we as a business, we also, as an industry, we also do pretty well.

Photo courtesy of Roche Bobois

“On the other hand, you have Montreal, which is a bit different, but still also very wealthy, with a lot of wealthy areas, more than construction, a lot of local companies. The Quebec companies that are are very well established and developed in Montreal, which gives a very, I would say, a strong economical foundation. And we have a very steady business. And for us, for example, Canada has been being a very good business for the last three, four years, since COVID during the pandemic time, but also after that, when the USA is a bit more challenging for the last year, year and a half.

“We strongly believe in the Canadian economy, I would say the foundations allowing us to generate more business.”

He said the brand used to only have a street presence in France before COVID.

During the pandemic, shopping centres took a hit.

“And so we had opportunities in 2021, 2022 to get some strategic locations in malls. And so we have, for example, in the US in California and in New Jersey, we are in malls. And then, as I mentioned, in Royalmount,” added Berardo

Centrally located just a few miles from Yorkdale’s high-end mall, the new Roche Bobois store is easily accessible for customers throughout the Greater Toronto Area (GTA) and beyond, including King City, Vaughan, Markham and Woodbridge.

Photo courtesy of Roche Bobois

The retailer said visitors to the new Toronto showroom will discover a curated selection of Roche Bobois’ best-selling pieces and iconic collections, including timeless favourites such as Mah Jong, Aqua, Lift, Bubble, Furtif and Astréa. The store also offers unparalleled customer service. From personalized 3D design consultations to state-of-the-art digital tools such as connected screens and tablet stands, every aspect of the shopping experience has been crafted with the discerning customer in mind.

Designed by Jacqueline Hopfer, head of Roche Bobois’ design department in Paris and daughter of the iconic Mah Jong sofa designer, the retailer said the space exudes elegance and sophistication. From the striking plant wall to the sleek suspended ceilings and intricate wooden claustra, every element has been meticulously curated to create an immersive environment.

Roche Bobois is a French brand that ranks among the world’s leading premium furniture and décor brands. Roche Bobois aims to celebrate the French Art de Vivre through its creativity, expertise and environmental responsibility. In each of its 260 showrooms/stores worldwide, Roche Bobois offers creative and original collections designed in collaboration with renowned designers and leading fashion houses.

Photo courtesy of Roche Bobois
Photo courtesy of Roche Bobois
Photo courtesy of Roche Bobois

Outdoor lifestyle brand Roots announces multi-near Nature Conservancy of Canada partnership

Photo from Nature Conservancy of Canada website

Premium outdoor lifestyle brand, Roots Corporation announced Thursday a three-year partnership with the Nature Conservancy of Canada (NCC).

In a news release, the retailer said the partnership was born out of a natural opportunity for two like-minded organizations to come together in an effort to protect and conserve Canada’s habitats, consisting of forests, wetlands, and shorelines, with the long-term vision of achieving a more sustainable future for all.

Meghan Roach

“At Roots, nature is not just an influence but a core element of our inspiration and product design,” said Meghan Roach, President and CEO of Roots Corporation. “Our deep connection with Algonquin Park has shaped our brand identity for over five decades and remains integral to our ethos. Partnering with the Nature Conservancy of Canada is a natural evolution for us—an extension of our commitment to protecting the very source of our inspiration.”

In the first year, Roots said it will be supporting the NCC’s conservation efforts in the Frontenac Arch Natural Area located in eastern Ontario just north of Kingston and northeast of the St. Lawrence River. This is one of the most biodiverse regions in Canada and a place of great beauty that links the Canadian Shield from Algonquin Park with the Adirondacks Mountains in New York State.

Home to thousands of species, the Frontenac Arch serves as a critical habitat linkage through to New York State. It was designated as a UNSECO World Biosphere Reserve in 2002 and is one of the most important forest corridors east of the Rocky Mountains. NCC works here protecting wilderness for species like black bear, moose and eastern wolf, bats, insects and dozens of bird species, said the news release.

“Nature has been at the foundation of the Roots DNA since its inception in 1973 in Canada’s Algonquin Park. Since then, the brand has developed a rich history of supporting a diverse range of communities and charitable partners. These partnerships align with, and support, the brand’s core values of community and authenticity, whilst ensuring efforts contribute to creating positive change today and for future generations. The collaboration with NCC strengthens Roots mission to support and conserve Canada’s natural spaces while identifying and addressing critical environmental needs,” added the retailer.

Roots said it will work collaboratively with NCC throughout the multi-year commitment to identify initiatives requiring priority focus based on research and ongoing analyses.

Catherine Grenier

“Our partnership with Roots marks an exciting step forward in accelerating conservation, starting with the Frontenac Arch Natural Area in Ontario,” said Catherine Grenier, president and CEO of the Nature Conservancy of Canada. “Multi-year partnerships like this are essential to successful conservation outcomes. Roots’ investment in nature is building resilient ecosystems that will thrive for generations.”

By supporting conservation in the Frontenac Arch, the two organizations will also be contributing to Canada’s conservation goals. Other benefits include connecting existing conservation lands and ensuring pathways for species to move throughout their life cycles, the care of existing conservation lands, expanding partnerships in the community to further conservation outcomes, and the prioritization of safe and accessible visitor experiences on lands. NCC currently owns and manages over 2,870 hectares and has assisted with an additional 2,985 hectares of protected habitat in the Frontenac Arch, said the news release.

“In February 2020, Roots launched “Roots Cares,” a program designed to give back to and partner with communities in need. Since its launch, Roots has donated approximately $3.6 million, along with in-kind donations to various organizations within communities in which Roots operates. Roots is deeply committed to preserving the landscapes that inspire the brand. Supporting NCC’s efforts to conserve Canada’s habitats is a commitment both organizations proudly embrace. Together, the goal is to generate meaningful change and promote a brighter, more sustainable future for all,” added Roots.

Established in 1973, Roots is a global lifestyle brand. Starting from a small cabin in northern Canada, Roots has become a global brand with over 100 corporate retail stores in Canada, two stores in the United States, and an eCommerce platform, roots.com. It has more than 100 partner-operated stores in Asia, and it also operates a dedicated Roots-branded storefront on Tmall.com in China.

NCC is the country’s unifying force for nature. NCC seeks solutions to the twin crises of rapid biodiversity loss and climate change through large-scale, permanent land conservation. NCC works with people, communities, businesses and government to protect and care for our country’s most important natural areas. Since 1962, NCC has brought Canadians together to conserve and restore more than 15 million hectares.

Chick-fil-A set to open four new restaurants in Ontario and Alberta

Photo courtesy of Chick-fil-A

Chick-fil-A says it will open four new restaurants by the end of this year in Ontario and Alberta, expanding the brand’s footprint to 20 locations in Canada.

Construction on the four new locally owned and operated restaurants is nearing completion, and once opened, will create approximately 400 jobs in total and will offer dine-in, take-out and drive-thru service, said the company in a news release.

The new restaurants opening in Ontario and Alberta are:

  • Chick-fil-A Appleby Crossing will begin serving the Burlington community Thursday October 3 and is located at 2331 Appleby Line. Wesley Lyon has been selected as the independent franchised Owner-Operator;
  • Chick-fil-A Macleod Trail will begin serving the Calgary  community later this year and will be located at 9223 Macleod Trail SW. Robert Bourassa has been selected as the independent franchised Owner-Operator;
  • Chick-fil-A Newmarket East will begin serving the Newmarket community later this year and will be located at 1111 Davis Drive. Julia Calandra has been selected as the independent franchised Owner-Operator;
  • Chick-fil-A South Edmonton Common will begin serving the Edmonton community later this year and will be located at 2060 99 Street NW. Thomas Messick has been selected as the independent franchised Owner-Operator. 


The company said most Chick-fil-A restaurants are owned and operated by a single individual, which means Chick-fil-A’s local Owner-Operators are small business owners, not passive investors, who work in their restaurants side by side with their Team Members each day.

Since 2020, Chick-fil-A said it has donated about C$2 million (US$1.46 million) to Second Harvest to support local hunger-relief organizations. Second Harvest is one of Canada’s largest food rescue organizations and helps reduce the environmental impact of food waste by redistributing surplus edible food from across the supply chain to non-profits throughout the country. In celebration of each new restaurant opening, Chick-fil-A will donate about C$34,000 (US$25,000) to Second Harvest to support local non-profit organizations in the community in the fight against hunger.

Photo courtesy of Chick-fil-A

“These four new restaurants will also be participating in the Chick-fil-A Shared Table™ program, an initiative that redirects surplus food from participating Chick-fil-A restaurants to local soup kitchens, shelters, food banks and non-profits to help feed those in need,” it said.

“To date, more than 30 million meals have been created using Chick-fil-A Shared Table donations from 2,200 Chick-fil-A restaurants throughout Canada and the U.S.”

Chick-fil-A, Inc. is the third largest quick-service restaurant company in the United States with more than 200,000 staff employed by independent owner-operators in more than 3,000 restaurants across the United States, Canada, and Puerto Rico. In 2023, the company shared plans to expand by 2030 into Europe and Asia.

The family-owned and privately held company was founded in 1967 by S. Truett Cathy. 

Related article: Chick-fil-A to Triple Canadian Footprint by 2025 with Planned Ongoing Expansion

Waterworks Food Hall becomes Toronto’s latest culinary destination (Photos)

Waterworks photo by Daniel Neuhaus

In a soaring heritage building in King West, one of Toronto’s most exciting urban neighbourhoods, Waterworks Food Hall has become a culinary destination offering a memorable and unique food experience.

The European-style food hall celebrates the best of the city’s dynamic culinary scene housed within a beautifully restored heritage industrial building. 

Stratton Townley

“Waterworks is the culmination of a collective vision brought to life, and we’re incredibly proud to celebrate it as a completed project rather than just an idea. This has been a true labor of love, and our entire team has been fully dedicated into creating something remarkable – and unique. Every detail, from the design-led heritage restoration to the community-focused approach to finding the right restaurants to join us, reflects our collective effort and vision, and we’re thrilled with the outcome,” said Stratton Townley, Director of Development for Waterworks.

“Our goal was always to ensure Waterworks became a neighbourhood gathering place—one that will serve as the heart and soul of King West for years to come. What makes Waterworks so special isn’t just the stunning heritage property we’ve restored, but how the space itself defies the typical food hall experience. Set within a beautifully transformed site that was once overlooked and run down, Waterworks now offers multiple points of access, overlooks a beautiful adjoining historic park, and showcases airy glass atriums and thoughtfully designed seating—all creating an inviting atmosphere that prioritizes our customer’s experience.

“We’ve worked tirelessly to design not just a great building, but a space that feels unlike anything else in Canada, and we couldn’t be prouder of what we’ve achieved together.”

Waterworks photo by Daniel Neuhaus

Opening Vendors: 

The 55,000-square-foot Waterworks Food Hall, which will have more than 20 hand-picked vendors serving specialty fare, seasonal offerings and authentic cuisines from around the world, is situated on a site with a rich history, initially serving as a public market, then as a public works space, and now as a landmark destination offering a unique culinary experience.

After eight years of extensive planning, research, development and execution, the Waterworks Food Hall opened its doors earlier this summer with over 15 cuisines, three bars and bottle shop and two patios plus over 12,000 square feet of event space and underground parking in the heart of Toronto at 499 Richmond St. W. in the Entertainment District.

The project, developed by Woodcliffe Landmark Properties and MOD Developments, is a full city block bounded by Adelaide St W, Maud St and Brant St. On the Adelaide frontage is the City of Toronto’s St. Andrew’s Playground Park that was recently overhauled and renovated. There’s also a condo component on the Richmond St side with 290 residential units and a state-of-the-art YMCA of approximately 60,000 square feet, taking the second floor.

Southeast Asian restaurant Lee was relocated from King West to Waterworks – a 6,000-square-foot establishment

Waterworks also includes SOBR Market, downtown Toronto’s first non-alcoholic bottle shop.

Waterworks photo by Daniel Neuhaus

The Behar Group handled tenant leasing at Waterworks and negotiated leases on behalf of the landlord.

With exposed brick walls and a soaring 44-foot ceiling with skylights and steel beams and columns, the Waterworks Food Hall is a stunning heritage building and a rich setting for events. It offers 12,000 square feet and four unique event spaces for private events, intimate gatherings, holiday celebrations, corporate functions, and more.

Here’s the history of the site from the Waterworks Food Hall website:

“A commercial centre for Toronto’s west end, the site once housed St. Andrew’s Market. Originally built in 1850, the first building was destroyed by fire in 1860. A grander and larger market, designed in the Renaissance Revival style was opened in 1873. As a public market, it housed fresh produce, a police station and a public library. Due to waning popularity, the market was decommissioned in the early 1920s and sat vacant for over a decade. 

“The Waterworks Building was designed by City of Toronto Chief Architect J.J. Woolnough in 1932 as part of a government initiative to create jobs during the Great Depression. It was a complex of connected structures around a central courtyard with Art Deco detailing like stone quoins, copper coping, and dog-toothed brick. Designed for the Water Works offices, maintenance and storage of equipment, the building was decommissioned in 2013 and awarded heritage status in 2017. 

“In 2016, Woodcliffe Landmark Properties, in partnership with MOD Developments, purchased the former public works facility. With frontage on Brant Street, Maud Street, and Richmond Street, was redeveloped for mixed-use including 297 condominiums, a 60,000 sf YMCA, 75 underground parking spaces, and a 55,000 sf European-inspired food hall. Waterworks fronts onto St. Andrew’s Playground Park that added an expanded off-leash dog park, an expansive playground and a myriad of seating options for gathering.

“The restoration of the “Great Hall” resulted in a remarkable adaptive reuse of the former machine shop, which was acquired in a state of disrepair. From preserving the soaring skylights to introducing floor-to-ceiling windows to repositioning the Art Deco gates to the hidden courtyard off Richmond St. and reclaiming wood from the original floor to create a mosaic spanning the height of the main stairwell, every detail has been meticulously executed.”

Waterworks photo by Daniel Neuhaus
Waterworks photo by Daniel Neuhaus
Waterworks photo by Daniel Neuhaus
Waterworks photo by Daniel Neuhaus
Waterworks photo by Kayla Rocca

Donnelly Group announces plan to restructure and exit CCAA

Sing Sing Beer Bar by Freehouse Collective (CNW Group/Donnelly Group)

With an approved extension on its stay of proceedings from the Supreme Court of B.C., the Donnelly Group of companies including its hospitality businesses under Freehouse Collective, announced Thursday its aim now is completing its financial restructuring in order to exit CCAA.

Jeff Donnelly

“It’s been a long and intense process,” said CEO Jeff Donnelly in a news release, “which is now due to end happily thanks to our determination and the remarkable patience of our principal creditor BMO.”

The company said the stay of proceedings extension was registered on September 25 leaving room until November 1 to finalize restructuring terms.

“Our opportunity, with BMO’s support, is to keep this company together and continue to employ our staff, serve our communities, and ensure that great hospitality remains integral to our collective culture,” added Donnelly.

Over the past year the group was forced to sell or release several historic Vancouver businesses such as Cinema as well as The Railway and Bimini’s which have since been sold again before closing, all indelible marks of the real challenges continuing to face the hospitality industry and a loss of two deeply storied venues, it said.

“It’s a tough time for this industry which is news to no one,” explained Donnelly. “Without business experience, access to capital, and a great product suited to your market, the revenues and margins are no longer there. I applaud operators who have survived, thrived even. We’re excited to again be joining those ranks.”

Freehouse Collective has recently opened Sing Sing Beer Bars in Vancouver’s Commercial Drive and on Adelaide St in Toronto’s financial district. It will also open Sing Sing Riverdale in Toronto’s Danforth neighbourhood this Fall, and next Spring, Sing Sing Willowbrook in Langley’s newly constructed Courtyard at Willowbrook Shopping Centre.