Primaris REIT (PMZ-UN-T) has been very actively acquiring enclosed shopping centres over the past couple of years, and is now taking steps to intensify some of the sites in its 28-property portfolio. 

“We have 1,400 acres of land across Canada and of that, about 400 acres would be what we would consider excess land — and it's all the way from Halifax to Vancouver,” Primaris chief executive officer Alex Avery told RENX in an exclusive interview about its plans.

“We think that it's a huge opportunity for us to repatriate some capital to reinvest in our mall business, but also it'll help ease the housing affordability crunch in Canada.”

Toronto-headquartered Primaris doesn’t do residential development and doesn’t plan to add that capacity, but Avery said it’s happy to sell its excess land to those that do and can execute on it responsibly.

“Typically, these excess lands are relatively small investments compared to the value of the mall, and we intend to continue to own these malls,” Avery explained. “We want to make sure that whatever happens with these lands is done in a responsible way that's complementary to the community and to our mall.”

While multiresidential and mixed-use development is most likely on these sites, hotels or self-storage facilities could also be considered.

Avery said most of Primaris’ properties have intensification potential, but he specifically named: Galeries de la Capitale in Quebec City; Halifax Shopping Centre; Oshawa Centre in Oshawa, Ont.; Promenades St-Bruno on Montreal’s South Shore; Sunridge Mall and Marlborough Mall in Calgary; Dufferin Mall in Toronto; and Place d’Orleans in suburban Ottawa. 

Quebec City’s Galeries de la Capitale

The mall that could be acted upon first is the 91-acre Galeries de la Capitale site, which Primaris acquired from Oxford Properties for $325 million in the fall of 2024.

Primaris is partnering with local developer Immostar, which specializes in multiresidential, commercial, industrial and office projects. The real estate investment trust hired Immostar, which has delivered a master plan for excess land at the mall that identifies about 5,000 residential units which could be built there.

While it hasn’t yet been established if Immostar will execute on the development, Avery said it has a good shot at doing so.

“Their headquarters are right across the road and they know how to navigate the local approvals process,” Avery said. 

“They know the politicians, they know the residents, and they have a vested interest in making sure that what happens at the site is something that we'll be happy with, that the neighbours will be happy with, and that we’ll end up with a successful outcome for everyone around the table.”

Halifax Shopping Centre

Primaris acquired Halifax Shopping Centre and the adjacent Annex from OPB Realty Inc., the real estate arm of the Ontario Pension Board, for $370 million in the fall of 2023. 

Halifax-based Upland Planning + Design Studio has submitted a planning rationale letter on its client’s behalf for a proposed mixed-use development as part of the neighbourhood planning process for the city’s West End Mall Future Growth Node.

It’s an update from a 2021 proposal submitted by the mall’s previous owner and its property manager, Cushman & Wakefield Asset Services.

“This was a site that others have identified as a place for residential intensification, and we're just picking up the torch where others left off,” Avery said.

Halifax development proposal

The proposal is to to demolish some existing retail buildings and develop two multi-use buildings with four residential towers of 22, 32, 37 and 42 storeys. Grade-related dwellings and commercial and office uses are proposed within four- to five-storey podiums. 

The two-phased development would provide 1,386 residential units, amenities and 832 parking spaces.

The development would also include an integration and upgrade of the Mumford transit terminal as well as a 10,000-square-foot community space, publicly accessible pedways and elevators, and a public park.

Avery said some local companies have expressed interest in potentially partnering with Primaris on the development, but no decisions have been made.

“Establishing the parameters within which development is supported is a critical first step,” Avery explained. “Once we identify what the opportunity is, then we can select the appropriate party that we’ll partner with, or just sell the land to. 

“But we want to be very comfortable that what happens after Primaris no longer owns the land is something that we're going to be happy with as ongoing mall owners.”