The owner of the Medicine Hat Mall says the departure of Hudsons Bay locations provides opportunity for the spaces to be used in step with its more modern strategy. The Bay at the Medicine Hat Mall is seen in this 2019 file photo.--NEWS FILE PHOTO
@@CollinGallant
The owner of the Medicine Hat Mall says it is well-prepared for the departure of Hudson Bay stores, which are now being liquidated, and says the huge spaces could follow the set redevelopment pattern it has used for a decade.
Primaris Real Estate Income Trust announced this week it has nine lease agreements with the Bay in its nationwide network of shopping malls. That combined 1 million square feet of leased space provides $10.8 million per year in rent.
Officials suggested however, that reworking the large spaces for anchor tenants could be divided into new commercial avenues lined by mid-sized retailers – similar to what’s happened twice in 12 years at the Medicine Hat Mall.
“Primaris REIT has been preparing for the departure of HBC, as its department store peers downsized and ceased operations over the past 15 years, including Zellers, Target and Sears,” said Patrick Sullivan, Primaris’s president and CEO in a release Tuesday.
“The departure of Canada’s final conventional department store will enable future value creation for our stakeholders, paving the way for optimal use of space that better reflects the evolving needs and desires of the growing communities.”
In Medicine Hat, the company replaced Zellers with Target in the early 2010s as the U.S. chain made an unsuccessful attempt at Canadian expansion. That area then became part of a remodelled and expanded food court, and bays for major chain outlets such as Marshall’s and HomeSense.
At the other end of the facility, the bankruptcy of Sears Canada – a founding leaseholder at the mall on Dunmore Road – led to another remaking and division of space eventually taken up by Old Navy, Dollar Store and others.
Primaris states it is following the court creditors action of HBC closely and “has updated its long-standing re-tenanting, redevelopment and pre-purposing plans in relation to each of the locations with significant analysis and evaluation of alternatives.”
“As a result, Primaris is ready to act, at the first opportunity,” it concludes.
Separately on Tuesday, Primaris announced it has finalized the sale of two malls in the Edmonton area for a total consideration of $167 million.
The Sherwood Park Mall and St. Albert Centre have a combined footprint of 770,000 square feet of leasable space, which would leave Primaris with about 15 million square feet in various properties across the country.
The portfolio includes Park Place Mall in Lethbridge, the Peter Pond Mall in Fort McMurray and three in Calgary, Marlborough Mall, Northland Mall and Sunridge Mall.
It also controls two malls in British Columbia, Manitoba and New Brunswick, one in Quebec and eight in Ontario.
