Primaris REIT has completed the sale of Calgary’s Northland Village shopping centre and the adjacent Northland Professional Centre for $154 million, closing the transaction on December 19. The disposition forms part of the REIT’s ongoing capital recycling program and caps a multi year redevelopment effort that repositioned the property as a modern, open air retail destination in northwest Calgary.
Although the purchaser was not identified in Primaris’ official announcement, sources say that the assets were acquired by an affiliate of Canada Life, underscoring continued institutional appetite for stabilized, necessity based retail assets in major Canadian markets. The transaction was completed on an unencumbered basis, with TD Cornerstone Commercial Realty and RBC Capital Markets Real Estate Group acting as exclusive advisors to Primaris.
A High Visibility Calgary Retail Asset
Northland Village occupies a 31.81 acre site at the intersection of Crowchild Trail and Northland Drive NW, one of northwest Calgary’s most visible and heavily trafficked corridors. The property benefits from exposure to more than 75,000 vehicles per day and sits within a five minute drive of the Brentwood LRT station, providing strong connectivity to surrounding residential communities.
The retail component spans 30.32 acres and totals 383,041 square feet of gross leasable area, supported by 720 surface parking stalls. The office component consists of a separately titled 52,379 square foot professional centre located at 4600 Crowchild Trail NW. At the time of sale, the combined retail and office complex featured a weighted average lease term of 6.7 years and an average in place minimum net rent of $24.10 per square foot, reflecting stable income characteristics aligned with institutional investment criteria.
From Enclosed Mall to Open Air Format
Originally opened in 1971 as an enclosed, single level shopping centre, Northland Village underwent several expansions in the early 2000s before entering its most significant transformation earlier this decade. The most recent redevelopment converted the aging enclosed mall into a largely open air retail centre designed to reflect contemporary consumer preferences and evolving retailer requirements.
The approximately $120 million redevelopment was led by Ledcor and involved the demolition of roughly 240,000 square feet of enclosed mall space. Six new stand alone retail buildings were constructed, adding more than 200,000 square feet of mixed use retail space, while selected existing structures were retained and renovated. The redevelopment also prioritized site circulation, visibility, and parking efficiency, creating a format better suited to necessity driven and service oriented tenants.
This transformation proved critical to stabilizing the asset and positioning it for sale. By the time the property was formally marketed in early September, Northland Village was 97.8 percent occupied, reflecting strong leasing demand and tenant retention following redevelopment.
A Necessity Based Tenant Mix
Northland Village’s tenant roster is anchored by a lineup of national retailers that drive consistent daily traffic. Major tenants include Walmart, Best Buy, GoodLife Fitness, Dollarama, Winners, and Spinelli Italian Centre Shop.
Approximately 80 percent of in place gross rent is generated by national and regional tenants with established credit profiles. This emphasis on essential retail, fitness, grocery, pharmacy, and value oriented categories has contributed to resilient cash flows and reduced volatility, particularly in an environment where investors continue to prioritize income stability.
Built In Flexibility for Future Intensification
Beyond its current operating performance, the Northland site offers meaningful long term optionality. The size of the land parcel, combined with surface parking and relatively low site coverage, provides flexibility for future intensification, mixed use redevelopment, or phased repositioning as market conditions evolve.
Primaris previously demonstrated this potential in 2022, when it sold approximately two acres of excess land along Northland Drive NW to a residential developer. That parcel was subsequently developed into a 219 unit rental apartment complex, highlighting the site’s appeal for residential and mixed use applications within a mature urban setting.
A Capstone Transaction in a Busy Disposition Year
The Primaris Northland Village sale represents the final and largest disposition completed by the REIT in 2025. In total, Primaris executed approximately $400 million in non core asset sales during the year, encompassing 1.74 million square feet of gross leasable area across multiple property types and markets.
Earlier 2025 dispositions included the sale of Sherwood Park Mall and Sherwood Park Professional Centre in Alberta, St. Albert Centre, several strip plazas and excess land parcels in Medicine Hat, the Lansdowne industrial centre in Peterborough, and Northpointe Town Centre in Calgary. Collectively, these transactions reflect a deliberate strategy to monetize smaller format and non core assets while sharpening the REIT’s focus on dominant enclosed shopping centres.
“Primaris is very pleased to close out the year with the strategic disposition of Northland, continuing to demonstrate our track record of disciplined capital allocation and capital recycling,” said Alex Avery in a statement announcing the transaction. “Executing $400 million of non core asset sales in 2025 underscores Primaris’ commitment to maintain a best in class balance sheet while continuing to leverage the competitive advantage our management platform provides, for acquiring, owning and managing market leading Canadian malls.”
Proceeds from the sale are expected to be allocated toward debt repayment, the repurchase and cancellation of units under the REIT’s normal course issuer bid, and general trust purposes.
Recycling Capital Into Core Mall Assets
While divesting non core assets, Primaris has simultaneously been active on the acquisition front, deploying capital into large scale enclosed shopping centres with dominant market positions. Over the past several years, the REIT has completed a series of high profile transactions that have reshaped its national portfolio.
Recent acquisitions include Promenades St Bruno on Montreal’s South Shore and Lime Ridge Mall in Hamilton, both acquired from Cadillac Fairview, as well as Galeries de la Capitale in Quebec City acquired from Oxford Properties. Earlier transactions included the acquisition of Halifax Shopping Centre and its adjacent annex from OPB Realty Inc. and Conestoga Mall in Waterloo from Ivanhoé Cambridge.
These assets align with Primaris’ strategy of owning and operating large, regionally dominant shopping centres that serve as primary retail destinations within their trade areas. Capital generated from dispositions such as Northland Village has played a key role in funding this portfolio repositioning while maintaining balance sheet discipline.
