Primaris REIT Expands Portfolio with $585 Million in Enclosed Shopping Centre Acquisitions

Primaris Real Estate Investment Trust (Primaris REIT) has announced the closing of two significant acquisitions, totaling $585 million, which further expands its portfolio of leading enclosed shopping centres in growing Canadian markets. The acquisitions include a 50% interest in Southgate Centre in Edmonton, Alberta, and 100% ownership interest in Oshawa Centre in Oshawa, Ontario. These transactions align with Primaris REIT's growth strategy, focusing on market leading shopping centres in growing Canadian markets.

Southgate Centre and Oshawa Centre are both market leading regional enclosed shopping centres with strong sales volumes, located in large and growing markets with access to mass transit. These properties exhibit all the characteristics Primaris REIT is targeting with its growth strategy. The acquisitions provide several opportunities for growth, including the conversion of tenants from variable to net rent deals, leasing up vacant space and temporarily tenanted space, and optimizing former department store space.

The composition of the consideration payable for the Acquisitions, in conjunction with the net proceeds from the Dispositions, allows Primaris REIT to maintain its best-in-class capital structure and financial leverage metrics within the Trust's previously disclosed target range. Upon closing of the Acquisitions, Southgate Centre will become Primaris REIT's largest shopping centre measured by all store sales volume and same store sales productivity, and Oshawa Centre will become Primaris REIT's third largest shopping centre. This expansion of the portfolio's size and quality is consistent with the Trust's growth strategy and should not negatively impact its financial leverage metrics.

Primaris REIT's commitment to maintain an extremely well capitalized balance sheet positions the REIT as a highly credible transaction counterparty, enabling continued growth. This commitment is highlighted in the press release, where Rags Davloor, Chief Financial Officer, states, "Acquiring these high quality assets, while maintaining industry leading credit metrics, is a testament to the strategic advantages provided by Primaris’ differentiated financial model. Our commitment to maintain an extremely well capitalized balance sheet positions Primaris as a highly credible transaction counterparty, enabling continued growth."

In conclusion, Primaris REIT's $585 million in leading enclosed shopping centre acquisitions further expands its portfolio and aligns with the REIT's growth strategy. The acquisitions provide several opportunities for growth and allow Primaris REIT to maintain its best-in-class capital structure and financial leverage metrics. The REIT's commitment to maintaining an extremely well capitalized balance sheet positions it as a highly credible transaction counterparty, enabling continued growth.