Leyad is again expanding its major retail property portfolio with the acquisition of the Pen Centre in Niagara Region for $140 million, the Montreal-based private investment firm announced.

Calling it a “landmark transaction” for the company, Leyad CEO Henry Zavriyev said part of the attraction for the Pen Centre is its potential for future residential densification.

"This is a transformational acquisition for Leyad," Zavriyev said in the announcement Thursday morning. "The Pen Centre is not only a premier retail destination serving over 8 million visitors annually, but also a site with extraordinary long-term development potential. 

“We see the opportunity to bring thousands of multiresidential units to this already-thriving hub, adding immense value to the community."

The shopping centre was previously operated by BGO on behalf of former owner the Ontario Pension Board.

The transaction adds to a long list of acquisitions for Leyad, in the retail and other CRE sectors, during the past 18 months. The privately held investor has been one of the most active buyers in Canada during that span of time.

About the Pen Centre shopping mall

Located in St. Catharines, the Pen Centre is the region's dominant shopping destination, comprising over 1.1 million square feet of gross leasable area on 2.8 million square feet of land. The property is anchored by leading national tenants including Loblaw Companies, Walmart Supercentre, Sephora and Lululemon, all of which are secured under AAA covenants.

The mall boasts current retail sales of approximately $650 per square foot annually.

“Leyad's vision is to maintain and elevate the Pen Centre's role as the commercial anchor of the Niagara Region while actively exploring the site's significant mixed-use redevelopment potential,” the announcement states.

The acquisition is one of the most substantial retail real estate transactions for the region in recent years, and continues a recent spate of major shopping centre and needs-based retail acquisitions across Canada.

Leyad, which was founded with Zavriyev’s acquisition of a small Montreal apartment building in 2016, had a very active 2024.

Leyad very busy buyer in 2024

It bought the Mega Centre Lebourgneuf in September in Quebec City for $66.5 million.

The 341,000-square-foot centre had been owned by Choice Properties and OPTrust and sits on a 43-acre site. The unenclosed power centre had 34 tenants including Costco, Canadian Tire, Sail, Maxi, Linen Chest, Value Village, Dollarama, The Home Depot, Structube, Sports Experts and Staples.

In June, Leyad closed deals for Cornerstone Prince Albert in Prince Albert, Sask., and Garden City Square power centre in Winnipeg for a combined $126 million.

Cornerstone Prince Albert was acquired from Choice Properties and Springwood Developments for $94 million. It comprises about 440,000 square feet of leasable space.

Garden City Square power centre at 783-915 Leila Ave. in Winnipeg was acquired from Primaris for $32 million. The 162,209-square-foot centre sits on 15.7 acres and is fully leased to tenants including Staples, Mark’s, Liquor Mart, Moores, McDonald’s, Marshalls, Dollarama and Planet Fitness.

At the time, Zavriyez told RENX his firm was planning more significant acquisitions.

“We’re at a very unique moment in time where a lot of investors that would usually be buying these great assets aren’t at the table,” Zavriyev told RENX. “The fundamentals of the real estate are great, the locations are great, the tenants are great and the fundamentals of Canada are fantastic with immigration and our infrastructure. Once the markets adjust a little bit in the next few years, we should be rewarded for it.”

Retail and other property acquisitions

Leyad had earlier acquired the 182,031-square-foot North Sydney Mall, which sits on 21.23 acres of land in North Sydney, N.S., for an undisclosed price from Econo-Malls. 

The company has been buying more than just retail properties.

Leyad also acquired Hotel & Spa Lac Brome – in southern Quebec, approximately half-way between Montreal and Sherbrooke – for an undisclosed price in a foreclosure sale last summer. It is Leyad’s first hospitality property, a small resort-style hotel with 40 guest rooms, a restaurant serving French cuisine, conference facilities and a spa.

It also expanded its Winnipeg presence with several acquisitions, including the CDI College campus at 280 Main St. The 24,000-square-foot building on 9.27 acres of land offers future highrise development potential of up to 180,000 square feet and 40 storeys.

Elsewhere in Winnipeg, Leyad bought a fully leased 263,430-square-foot distribution centre at 1450 Mountain Ave. in the Inkster Industrial Park; and the four-storey, 79,000-square-foot Johnston Terminal at 25 Forks Market Rd.

The multi-tenanted retail, commercial and office building was originally a railway warehouse in the 1920s before it was refurbished.