The Vaughan Mills shopping centre, just north of Toronto. (Courtesy Ivanhoé Cambridge)
Ivanhoé Cambridge has sold a 49 percent share of the 1.5 million square foot Vaughan Mills shopping centre to La Salle Investment Management through what they call a “syndication process,” the Montreal-based real estate company said Wednesday afternoon.
They didn’t give any financial details but mentioned this deal is “one of the largest retail transactions Ivanhoé Cambridge has made over the past few years” in their statement.
With this syndication, both Ivanhoé Cambridge and La Salle will co-own the mall, while Ivanhoé will keep managing the asset.
“We are thrilled to share the news of this enhanced partnership with La Salle, a sophisticated player who will contribute to the continued success of this property,” said Annie Houle, head of Canada at Ivanhoé Cambridge, in their release. “Vaughan Mills is a prominent shopping centre that has stood out over the past 20 years, highlighting the strength of retail”.
The Vaughan Mills shopping centre
Sitting at Hwy. 400 and Rutherford Rd., in Vaughan just north of Toronto, Vaughan Mills sees more than 13 million visitors each year. The mall is laid out like a one-level “race track” stretching about 1.7 kilometres and mixes regular retail stores with outlet brands, plus it focuses heavily on entertainment and leisure activities.
The mall currently houses around 250 shops and services, including over a dozen big anchor tenants.
Vaughan Mills is leased up at about 97 percent with an impressive mix of international and national brands. It got expanded in 2015 and holds BOMA Best Platinum certification-the highest rating for smart and sustainable building operations.
“Winning retail centres have remained quite resilient through cycles, and Vaughan Mills’ leasing and occupancy track record highlights its premier location and status in the market,” said Stuart Sziklas, senior managing director and portfolio manager at La Salle, in the announcement.
Major Canadian retail deals
This sale is part of several big retail property moves across Canada in 2023.
A couple big ones were bought by Toronto’s Primaris REIT – they spent $590 million on Halifax Shopping Centre plus Annex in Halifax and Conestoga Mall in Waterloo. Ivanhoé Cambridge had owned Conestoga Mall before as well.
A few other big retail spots are still up for grabs too-like Carlingwood Shopping Centre in Ottawa which hit the market during summer; it covers about 632,700 square feet.
An upcoming deal might also happen for Portage Place mall downtown Winnipeg – if it goes through with True North REIT involved – plans are to turn it into residential plus mixed-use space.
Ivanhoé Cambridge & La Salle Investment Management
Ivanhoé Cambridge invests in real estate projects worldwide together with partners and major funds.
The company owns stakes via subsidiaries or partnerships in roughly 1,500 buildings mostly across industrial/logistics, office spaces, residential units, and retail properties. As of December 31st, 2022 they held $77 billion worth of assets. They’re part of CDPQ-a global investment firm.
La Salle Investment Management is also a major player managing real estate investments globally.
Their portfolio includes around $89 billion worth as of Q3 2023 covering private & public real estate properties along with debt investments. Their clients range from pension funds to insurance companies plus governments and individuals alike.
The firm offers lots of investment types including separate accounts alongside open-closed end funds as well as public securities or entity-level investments too.
