- Primaris REIT has acquired over C$2.4B in Canadian malls since 2022 and is in talks for another C$4B in deals, positioning itself as the country’s go-to buyer of enclosed malls.
- While pension funds exit the mall sector, Primaris is offering them partial payment in stock—providing liquidity and upside potential—helping it secure better pricing and more assets.
- Primaris’ shares have returned roughly 40% since inception, outperforming its REIT peers, as investors warm to its long-term mall turnaround strategy.
A Contrarian Strategy
While Canada’s largest pension funds are offloading malls in favor of infrastructure and multifamily assets, Primaris REIT is making an aggressive bet on mall acquisitions in the struggling retail sector.
According to Bloomberg, since its 2022 launch, the trust has emerged as a unique consolidator of mid-market enclosed malls. Assets many institutions no longer want on their books.
Deal-Making in Motion
Primaris has already snapped up more than C$2.4B worth of mall acquisitions and is actively negotiating another C$4B in transactions. Major sellers include Quebec’s Caisse de dépôt and Ontario’s municipal employee pension plan. Deals are often structured with a mix of cash and stock, enabling pension funds to retain upside in future mall performance.
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Smart Capital Structure
Offering shares as part of acquisition deals allows Primaris to provide better pricing than all-cash competitors. It’s also helping the REIT build goodwill and establish itself as the buyer of choice for institutions looking to quietly exit the mall market. Its largest shareholder is the pension fund that sold it eight malls at launch.
Strong Market Performance
Despite broader skepticism about retail real estate, Primaris shares have returned 40% since 2022, outperforming other Canadian equity REITs. Analysts remain bullish, with six “buy” ratings and no “sells.” Analysts argue the market has prematurely written off malls, many of which are producing stable cash flow and seeing traffic rebound to pre-pandemic levels.
Betting on the Forgotten Malls
Primaris is focusing on malls in secondary and tertiary markets—often overlooked by institutional capital. CEO Alex Avery says about 50 malls in Canada meet the firm’s investment criteria, and Primaris already owns half. One mall in Alberta was even repurposed as a filming location for The Last of Us, showcasing the firm’s creativity in monetizing assets.
Why It Matters
As retail real estate supply shrinks and online brands seek physical footprints, Primaris is uniquely positioned to benefit from a quiet resurgence in brick-and-mortar. Its strategy of large-scale mall acquisitions may be unconventional, but so far, it’s working.
