In a move that underscores continued confidence in Canada’s enclosed shopping centre sector, Toronto-based Primaris Real Estate Investment Trust has announced the acquisition of CF Lime Ridge Mall in Hamilton, Ontario, from an entity managed by Cadillac Fairview, the real estate arm of the Ontario Teachers’ Pension Plan. The $416 million deal, comprised of a combination of cash and equity, is expected to close on June 17, and is among the largest retail real estate transactions in the country this year. As a result, the ‘CF’ will be dropped from the mall’s name.
In a statement, Primaris said the acquisition includes a 100% ownership interest in the 793,000-square-foot regional mall, with $235 million paid in cash, $100 million in 6.00% exchangeable preferred units, and $81 million in series A units issued at $21.40 per unit.
“This acquisition builds on our strategy to own leading enclosed shopping centres in growing Canadian markets,” said Patrick Sullivan, President and Chief Operating Officer of Primaris. “Lime Ridge Mall is a market-leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy.”
Key Property in a Strategic Location
Lime Ridge Mall, located at 999 Upper Wentworth Street, is the largest shopping centre in Hamilton—a city ranked as Canada’s ninth largest population centre. The mall sits on a 65-acre parcel of land with approximately 30% site coverage, and is strategically located near the Lincoln M. Alexander Parkway and within easy access to the QEW and Highway 403.
The mall is home to major retailers including Sport Chek, H&M, and Urban Planet. A range of premium retailers such as Aritzia, Sephora, Lululemon, Browns, JD Sports, and Shoppers Drug Mart are also tenants. Primaris reported that Lime Ridge generated $841 per square foot in same-store sales productivity and $251 million in total CRU sales volume during the 12-month period ending December 31, 2024—making it the fourth highest-performing property in the REIT’s national portfolio.
Opportunity for Growth Despite Hudson’s Bay Exit
According to leasing details provided in investor documents, the mall currently has a long-term in-place occupancy rate of 58.5%, with an in-place occupancy of 61.3% and committed occupancy of 62.3%. The weighted average lease term sits at five years. A large portion of the mall remains underutilized, including a 125,307-square-foot former Hudson’s Bay anchor store, the future of which remains unclear.
The press release from Primaris makes no direct reference to the Hudson’s Bay space. However, sources have indicated that Weihong (Ruby) Liu—who has placed a bid on 28 former Bay locations—has also expressed interest in repurposing the Lime Ridge Hudson’s Bay location as part of her upcoming Ruby Liu department store chain.
Primaris has been actively repurposing former department store spaces across its portfolio. “There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space,” said Sullivan.
Infrastructure and Redevelopment Add Value
Further adding to the mall’s appeal is the Lime Ridge Mall Transit Terminal, which sits on the property and currently serves five transit routes. The terminal, originally built in 1997, is being redeveloped as part of a City of Hamilton initiative, with construction expected to begin later this year. Improved public transit infrastructure is expected to increase foot traffic and customer accessibility.
Additionally, since 2015, approximately $20 million in capital upgrades have been made to the mall. These improvements include roofing, HVAC, elevators, electrical systems, parking lot paving, and tenant unit refurbishments. The property also holds a BOMA Best Platinum certification for sustainability and operational excellence.
2025 Acquisition Momentum Builds
The acquisition of Lime Ridge Mall brings Primaris’ total enclosed shopping centre acquisitions for 2025 to $1 billion—exceeding its stated three-year growth target. In January, Primaris purchased the Oshawa Centre in Ontario and a 50% stake in Edmonton’s Southgate Centre for a combined $585 million, both from Ivanhoé Cambridge.
“With the acquisition of Lime Ridge Mall, we are improving the overall quality of our enclosed shopping centre portfolio,” said Alex Avery, Chief Executive Officer of Primaris. “This brings our annual same-store sales productivity to $774 per square foot, on a proforma basis, up from $768 per square foot as of March 31, 2025.”
Chief Financial Officer Rags Davloor emphasized the strength of the REIT’s financial structure, noting that the acquisition “while maintaining industry leading credit metrics, is a testament to the strategic advantages provided by Primaris’ differentiated financial model.”
Future Leasing and NOI Upside
The acquisition also comes with potential upside in terms of leasing and revenue generation. Primaris estimates that approximately 266,200 square feet of former anchor space, along with 53,000 square feet of vacant or temporarily leased CRU space, can be leased to high-quality national tenants at market rents.
Through its internal management platform, the REIT expects to leverage its cost efficiencies and operational know-how to drive higher net operating income. For fiscal 2025, Cash NOI is projected to range between $331 million and $337 million, up from $280 million in 2024. The acquisition is expected to be modestly accretive to FFO per unit.
On a proforma basis, the trust’s total CRU sales volume will rise to over $3.22 billion, and annual foot traffic is forecast to grow from 138 million to nearly 147 million visitors. The trade area for Lime Ridge includes more than 800,000 residents with an average household income of $121,700—higher than the REIT’s overall portfolio average.
Primaris Builds Market Leadership
Primaris REIT is the only publicly traded real estate investment trust in Canada exclusively focused on enclosed shopping centres. Its portfolio now totals 15.0 million square feet of gross leasable area, valued at approximately $4.9 billion.
With a fully internal, vertically integrated management team and a strong capital base, the trust is positioned to pursue opportunities during a time of significant transformation in the Canadian retail property landscape.
“As the only Canadian REIT exclusively focused on owning and managing enclosed shopping centres, Primaris continues to demonstrate its long-term strategy is delivering results,” said Avery. “Our scale, strong balance sheet, and deep retail relationships position us well to capitalize on a generational shift in retail real estate.”
