Oxford, CPPIB shop large Quebec City mall

  • What Galeries de la Capitale is on the block
  • Why Pricing guidance for the largest shopping centre in Québec City is $300m
  • What next The mall was added to Oxford Properties and Canada Pension Plan Investment Board’s joint venture in 2013

Oxford Properties and Canada Pension Plan Investment Board have listed the largest shopping mall in Québec City, Green Street News can reveal.

Pricing guidance for the 1.3m sq ft property is $300m, which would result in a first-year capitalization rate of 8.25%. The joint venture has tapped RBC to market the property.

The mall, at 5401 Boulevard des Galeries in the Les Rivières borough, has approximately 200 stores and 5,800 parking stalls. Anchor tenants include Hudson’s Bay, IMAX, Simons and Toys ‘R’ Us. There’s also Méga Parc, an indoor amusement park.

Galeries de la Capitale sees 9.5m shoppers and $350m of total sales annually, according to marketing materials. More than 506,000 people with an average household income of $83,606 live in the surrounding trade area, and 143,000 vehicles pass the site each day. Customers spend an average of $200 per visit.

The mall was built in 1981, when Iberville Developments was the majority owner. In 2005, a consortium purchased the property for $358m, and CPPIB acquired an 80% stake. In 2013, the property was added to CPPIB and Oxford’s venture, with each entity assuming a 50% stake and the latter taking on management of the mall.

Oxford is a commercial real estate investment, development and property management company headquartered in Toronto. It’s led by executive chair Daniel Fournier and is wholly owned by the Ontario Municipal Employees Retirement System. As of Dec. 31, 2023, OMERS held $128.6bn in net assets.

CPPIB is a Crown corporation that invests funds on behalf of CPP. John Graham is president and CEO of the investment board, which is headquartered in Toronto. At yearend 2023, the fund had $590.8bn in assets under management.

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