Immostar, Primaris REIT Expand in Quebec City with $62.3M Mall Acquisition
Immostar and Primaris REIT have announced the acquisition and closing of the north and south open-air retail centres, collectively known as Complexes Capitale, located adjacent to Les Galeries de la Capitale in Quebec City. The transaction, valued at approximately $62.3 million, strengthens the strategic retail footprint of both partners in one of the city’s fastest-growing commercial districts.
The acquired assets are situated directly north and south of the established enclosed shopping destination Les Galeries de la Capitale, in the Lebourgneuf sector of Quebec City. Together, the Complexes Capitale properties span approximately 307,900 square feet of gross leasable area (GLA) across 29 acres of land. The sites are fully occupied, with a 100% lease rate supported by a strong lineup of national and well-established tenants.
The tenant mix includes major retail and service brands such as Rona, BMO, Adonis Mediterranean Market, McDonald’s, and Golf Town, among others. This diversified occupancy base contributes to stable income generation and reinforces the long-term investment appeal of the property. The open-air retail centres benefit from strong visibility, high traffic flow, and immediate adjacency to a major enclosed mall, enhancing their overall commercial value.
The transaction structure includes a partnership between Immostar and Primaris REIT, with Immostar serving as the managing partner holding a 75% ownership interest, while Primaris REIT holds a 25% non-managing interest. This structure allows both organizations to leverage their respective strengths, with Immostar leading operational management and Primaris contributing long-term investment stability and strategic oversight.
According to François Pelchat, Partner at Immostar, the acquisition reflects the company’s deep-rooted expertise in commercial real estate development, despite being widely recognized for its residential projects. He emphasized that commercial real estate has always been central to Immostar’s operations since its inception. With more than 3.5 million square feet of developed and managed properties, the company continues to position itself as a key player in high-growth urban development areas such as Lebourgneuf.
Pelchat highlighted that the acquisition of Complexes Capitale reinforces Immostar’s long-term commitment to investing in strategic growth corridors within Quebec City. By consolidating ownership around Les Galeries de la Capitale, the company aims to create stronger synergies across the entire site, improving overall planning, development potential, and asset performance.
From Primaris REIT’s perspective, the transaction represents a strategic expansion of its retail portfolio and an opportunity to enhance the value of one of its core holdings in Quebec City. Alex Avery, Chief Executive Officer of Primaris REIT, noted that the acquisition increases the total landholding footprint of the Galeries de la Capitale site from approximately 93 acres to 122 acres.
Avery explained that the acquisition of a 25% non-managing interest allows Primaris to participate in the long-term upside of the asset while leveraging Immostar’s local development expertise. He emphasized that the combined ownership structure provides greater flexibility for future master planning initiatives, particularly as excess lands surrounding the retail complex are evaluated for potential redevelopment.
The Complexes Capitale acquisition is viewed as a highly strategic move due to its location within the Lebourgneuf sector, one of Quebec City’s most dynamic and rapidly developing economic zones. The area has become a major commercial hub, attracting consistent consumer traffic, retail investment, and urban expansion. Its strong infrastructure connectivity and accessibility make it an increasingly attractive destination for both businesses and shoppers.
The properties’ full occupancy status further enhances their appeal as a stable, income-generating investment. With all 307,900 square feet leased to national tenants, the asset provides predictable cash flow while also offering opportunities for long-term value creation through redevelopment and optimization strategies.
Immostar has indicated that it intends to actively pursue value-enhancement initiatives across the Complexes Capitale properties. These efforts will focus on improving site efficiency, enhancing tenant experience, and aligning future development opportunities with broader growth trends in the Lebourgneuf sector. The company’s long-term vision includes leveraging the consolidated site to support coordinated planning across the entire Les Galeries de la Capitale ecosystem.
The acquisition also reflects a broader trend in commercial real estate toward integrated site planning and mixed-use development strategies. By consolidating adjacent properties under coordinated ownership, developers and investors can unlock greater flexibility in land use planning, improve operational efficiencies, and maximize long-term asset value.
For both Immostar and Primaris REIT, the transaction represents not only a financial investment but also a strategic positioning move in one of Quebec City’s most important retail corridors. The partnership strengthens their ability to influence future development outcomes in the area while capitalizing on sustained population growth and commercial demand.
As Lebourgneuf continues to evolve as a key urban hub, the Complexes Capitale acquisition positions both organizations to benefit from ongoing economic expansion and future redevelopment opportunities. With strong tenant fundamentals, strategic location advantages, and long-term planning potential, the asset is expected to play a central role in the continued transformation of the Galeries de la Capitale site into a fully integrated commercial destination.
Source Link:https://www.businesswire.com/
