OMERS buys Hammerson’s Canada portfolio

OMERS Realty Corp., a subsidiary of the Ontario Municipal Employees Retirement Board, has purchased all of Hammerson plc’s shopping center assets in Canada, a portfolio of 2.6 million square feet including the 1.4 million-square-foot Square One Shopping Centre in Mississauga, Ontario.

Other enclosed malls in the deal are the 510,000-square foot Stone Road Mall, Guelph, Ontario; and the 525,000-square-foot Westmount Shopping Centre, London, Ontario. Two community centers, Cumberland Terrace Shops, Toronto; and Edinburgh Market Place, Guelph, were also purchased by OMERS, as were three office buildings owned by Hammerson.

The purchase price was around C$800 million, according to published reports. OMERS, a Toronto-based pension fund, outbid at least two other institutional investors for the portfolio: Ontario Teachers Pension Plan Board and Gentra Canada Investments Inc., both of Toronto.

Square One is one of Canada’s largest malls, with 325 stores and four anchors: The Bay, Eaton’s, Sears and Wal-Mart.

Elizabeth Stroback, president of Hammerson Canada Inc., a subsidiary of London-based Hammerson plc, told ICSCNET she expected the company would continue to manage the malls under OMERS.

A statement from Hammerson plc said the company sold its Canadian assets to finance other projects in Europe.