04:53 PM EDT, 06/16/2025 (MT Newswires) -- Primaris Real Estate Investment Trust (PMZ-UN.TO) after trade Monday said it agreed to acquire the Lime Ridge Mall in Hamilton, Ontario, from an entity managed by Cadillac Fairview for $416.0 million, to be satisfied by a combination of cash and equity, subject to certain conditions. It also announced a related secondary offering.

The acquisition is expected on June 17, subject to the satisfaction of customary closing conditions.

Primaris anticipates the following proforma metrics: Based on the REIT's 3.0% to 4.0% 2025 Same Property Cash net operating income (NOI) growth guidance and assuming a June 17 closing, cash NOI for the 2025 fiscal year is anticipated to be in the range of $331 million to $337 million, up from $280 million in 2024.

Also, on a net basis, the acquisition is expected to be modestly accretive to funds from operations per unit; and Average Net Debt to Adjusted EBITDA is anticipated to remain within target range of 4.0x to 6.0x.

Primaris also said it and an affiliate of the vendor have entered into an agreement with a syndicate of underwriters that will purchase, on a bought-deal basis, an aggregate of 8.46-million REIT units from the selling unitholder at a price of $14.70 per unit for gross proceeds of $124.3 million. Following the offering, the selling unitholder will not hold any Primaris units. The offering is expected to close on or about June 20 and is subject to customary closing conditions. The closing of the offering is conditional on the closing of the acquisition.

"Lime Ridge Mall is a market leading regional enclosed shopping centre with all of the property characteristics Primaris is targeting with its growth strategy. The mall produces over $251 million in annual sales, $841 in sales per square foot, and is located in a large and growing market, with access to mass transit," said chief operating officer Patrick Sullivan.

Sullivan added: "There is significant opportunity for growth at this centre including leasing up vacant and temporarily tenanted space, and optimizing former department store space."

With the acquisition of the Lime Ridge Mall, Primaris' 2025 acquisitions total $1 billion of leading enclosed shopping centers, exceeding its three-year target, said chief executive Alex Avery. "We are improving the overall quality of our enclosed shopping centre portfolio, driving the portfolio's annual same store sales productivity from $768 per square foot as at March 31, 2025 to $774 per square foot, on a proforma basis. The concurrent equity offering will increase Primaris' public float and enhance the trading liquidity of Primaris' units, to the benefit of all unitholders," he added.

Primaris units closed down $0.12 to $15.20 on the Toronto Stock Exchange.