Ivanhoé Cambridge, the Caisse de dépôt et placement du Québec’s real estate arm, and Sears Canada have agreed to sell their interests in a Winnipeg shopping mall.
Both Ivanhoé Cambridge’s 80% ownership interest and Sears’ 20% ownership interest in Kildonan Place are to be sold for total pre-tax consideration of $138.5 million, $110.8 million being Ivanhoé Cambridge’s share and $27.7 million being Sears Canada’s share.
The purchaser is H&R Real Estate Investment Trust (REIT), which intends to assign an undivided 50% interest to Montez Income Properties Corp. prior to closing.
Primaris Retail REIT, a wholly owned subsidiary of H&R REIT, will manage the property.
“The freed-up capital from this transaction will allow us to strengthen our Canadian retail portfolio, including our Mills and Outlet Collection retail development projects across the country,” says Arthur Lloyd, Ivanhoé Cambridge’s executive vice-president, global investments.
The transaction is expected to close next month.
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