On September 25, 2024, Primaris Real Estate Investment Trust (TSX: PMZ.UN) acquired Les Galeries de la Capitale in Quebec City for a total consideration of $325 million. The transaction included $170 million in cash, 2.5 million Series A REIT units valued at $55 million, and $100 million in exchangeable preferred units, subject to conditions. Using contracted figures, the deal's value was estimated at $291.7 million. This acquisition aligns with Primaris' growth strategy, targeting high-quality, market-leading shopping centers.

The transaction is expected to be modestly accretive to funds from operations (FFO) per diluted unit while maintaining a targeted Net Debt to Adjusted EBITDA ratio of 4.0x to 6.0x. Closing was anticipated by October 1, 2024, pending customary conditions.

Les Galeries de la Capitale, a major regional shopping center, spans 1,015,000 square feet on 91 acres in Quebec City, featuring high occupancy and significant growth potential. It boasts strong sales productivity and benefits from excellent accessibility and a large catchment area.

Advisors for Primaris included CBRE Canada, Desjardins Capital Markets, and TD Securities, while RBC Capital Markets Real Estate Group Inc. advised the vendors. The acquisition enhances Primaris' portfolio and reinforces its position as a key player in the Canadian retail real estate market.