Primaris Real Estate Investment Trust has agreed to acquire full ownership of Upper Canada Mall in Newmarket, Ontario, for $411 million in cash, in a move the Toronto-based REIT says builds out its portfolio of dominant enclosed shopping centres in growing Canadian markets.
The transaction, announced by Primaris (TSX: PMZ.UN), covers a 990,114-square-foot shopping centre situated on 76 acres in the Greater Toronto Area. The deal is expected to close by October 31, 2026, pending customary closing conditions including any required regulatory approvals.
Deal Details and Strategic Rationale
Company executives described the acquisition as consistent with Primaris’ strategy of buying market-leading malls where its operating platform can drive income growth. Patrick Sullivan, President and Chief Operating Officer of Primaris, said Upper Canada Mall has strong demographics and an exceptional tenant mix, with meaningful opportunities to grow net operating income through leasing and active asset management.
Julian Schonfeldt, Chief Investment Officer, said the property was the subject of a broadly marketed sale process and that Primaris’ reputation as a well-capitalized buyer positioned it as a preferred counterparty for vendors. Chief Executive Officer Alex Avery said the acquisition adds a high-quality GTA asset to the portfolio and pushes the company’s proforma same store sales productivity to $829 per square foot.
Mall’s Location and Tenant Mix
Upper Canada Mall sits at the intersection of Yonge Street and Davis Drive in Newmarket, with access to Highways 400 and 404. A Bus Rapid Transit terminal is adjacent to the mall’s south entrance, and the Newmarket GO Station is located roughly 1.8 kilometres away.
The property reports same store sales productivity of $888 per square foot and total annual sales volume from its commercial retail units of $271 million. Its tenant lineup includes Apple, Aritzia, Browns, Lululemon, Sport Chek, Uniqlo, Winners, Sephora, Victoria’s Secret and Zara.
The mall has seen recent investment, including a 2008 expansion that added 148,000 square feet of retail space and a new food court, the 2018 opening of Market & Co., and a new Yonge Street entrance completed in 2025. The property holds BOMA BEST Platinum certification. Primaris noted that occupancy currently stands at about 70% in-place, with roughly 80% committed occupancy excluding vacant former Hudson’s Bay space; excluding that space, in-place occupancy is 82%. The weighted average lease term across the property is 4.2 years.
Financial Impact on Primaris
Primaris said the acquisition is expected to be modestly accretive to its annualized fully diluted funds from operations (FFO) per unit, and that the REIT’s leverage, measured as average net debt to adjusted EBITDA, is expected to remain within its target range of 4.0x to 6.0x.
Upper Canada Mall Acquisition — Key Figures
Factoring in the deal and an assumed October 31, 2026 closing date, Primaris updated its full-year 2026 cash NOI guidance to a range of $397 million to $402 million, up from prior guidance of $390 million to $400 million. Cash NOI for the 2025 fiscal year was $360 million. The company also adjusted its full-year 2026 FFO per unit guidance to a range of $1.83 to $1.88, down from a previous range of $1.85 to $1.90, reflecting a $230 million equity offering that closed on September 22, 2026, and the timing of deploying those proceeds. All other previously published 2026 guidance metrics remain unchanged.
Once the acquisition closes, Upper Canada Mall is expected to become Primaris’ fourth-largest shopping centre by total CRU sales volume.
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