Key Takeaways
- • Cadillac Fairview Corp. paid $553.21 million to buy back the 50% stake in CF Carrefour Laval that it had sold to TD Asset Management, according to data obtained by CoStar.
- • The transaction was triggered by a clause in the 2019 deal that forced Cadillac Fairview to either sell or buy the half-interest, a source close to the deal said.
- • The deal closed nearly five years after TD Asset Management acquired the stake, restoring Cadillac Fairview to full ownership of the suburban Montreal mall.
- • CF Carrefour Laval is the largest regional mall in the Montreal region, a roughly 1.2 million-square-foot property with 266 stores and average sales of $1,175 per square foot, per Cadillac Fairview.
- • CoStar characterized the transaction as one of the largest of the quarter, pointing to renewed institutional interest in Canada's retail real estate market.
Summary
Cadillac Fairview Corp., the real estate arm of the Ontario Teachers' Pension Plan Board, has reacquired the 50% interest in CF Carrefour Laval for $553.21 million, according to data obtained by CoStar. The Toronto-based company had previously sold the half-stake to clients of TD Asset Management, investing primarily through the TD Greystone Real Estate L.P. Fund and TD Greystone Real Estate Fund Inc., under a December 2019 agreement.
The repurchase was prompted by a clause in that deal. TD Asset Management triggered the provision, which required Cadillac Fairview to either sell or buy the 50% stake, a source close to the transaction told CoStar. The transaction occurred nearly five years after TD acquired its interest. A TD spokesperson said the company was "looking into this" when asked for comment, and Cadillac Fairview officials did not immediately respond to a request for comment. CoStar News confirmed the transaction through property records.
The 2019 agreement also gave TD Asset Management the ability to acquire a 50% ownership interest in CF Sherway Gardens. At the time, a TD spokesperson described the two firms as exhibiting "strong cultural alignment" and sharing the same long-term approach to real estate investing.
CF Carrefour Laval, located in the suburbs of Montreal and dating to 1969, is anchored by Rona, Hudson's Bay and Simons. Cadillac Fairview describes it as the most productive mall in Montreal outside the downtown core. CoStar noted the deal is among the largest of the quarter and reflects a resurgence in investor interest in Canada's retail real estate market, citing Primaris REIT's acquisition of Quebec City's largest mall for $325 million the previous month.
The repurchase was prompted by a clause in that deal. TD Asset Management triggered the provision, which required Cadillac Fairview to either sell or buy the 50% stake, a source close to the transaction told CoStar. The transaction occurred nearly five years after TD acquired its interest. A TD spokesperson said the company was "looking into this" when asked for comment, and Cadillac Fairview officials did not immediately respond to a request for comment. CoStar News confirmed the transaction through property records.
The 2019 agreement also gave TD Asset Management the ability to acquire a 50% ownership interest in CF Sherway Gardens. At the time, a TD spokesperson described the two firms as exhibiting "strong cultural alignment" and sharing the same long-term approach to real estate investing.
CF Carrefour Laval, located in the suburbs of Montreal and dating to 1969, is anchored by Rona, Hudson's Bay and Simons. Cadillac Fairview describes it as the most productive mall in Montreal outside the downtown core. CoStar noted the deal is among the largest of the quarter and reflects a resurgence in investor interest in Canada's retail real estate market, citing Primaris REIT's acquisition of Quebec City's largest mall for $325 million the previous month.
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