Ms. Claire Mahaney reports

IMMOSTAR AND PRIMARIS REIT STRENGTHEN THEIR PRESENCE IN QUEBEC CITY WITH THE $62.3 MILLION ACQUISITION OF THE NORTH AND SOUTH COMPLEXES OF LES GALERIES DE LA CAPITALE

Immostar and Primaris Real Estate Investment Trust have arranged the $63.0-million acquisition and closing of the north and south open-air retail centres (collectively, Complexes Capitale) located immediately adjacent to Primaris's enclosed shopping centre, Les Galeries de la Capitale. Situated in the heart of the Lebourgneuf sector, Complexes Capitale totals 307,900 square feet of gross leasable area and is 100 per cent leased to national tenants.

Complexes Capitale represents a highly strategic investment for Immostar and Primaris, enabling coordinated and enhanced development planning across the entire Galeries de la Capitale site.

Complexes Capitale highlights

• $62.3-million acquisition, with Immostar as managing partner owning a 75-per-cent interest and Primaris as non-managing partner owning a 25-per-cent interest;
• Located immediately north and south of Les Galeries de la Capitale;
• 307,900 square feet of open-air retail on 29 acres of land, resulting in approximately 22 per cent total site coverage for the combined site including Les Galeries de la Capitale;
• 100-per-cent in-place occupancy;
• Tenants include Rona, BMO, Adonis Mediterranean Market, McDonald's, Golf Town, among others.

"While the market often associates us with our residential developments, commercial real estate has been at the core of Immostar's DNA since its founding. With over 3.5 million square feet developed and managed to date, this acquisition reaffirms our position as a key player and our commitment to investing in high-growth strategic hubs such as Lebourgneuf," said Francois Pelchat, partner at Immostar.

"Our 25-per-cent non-managing interest in these strategic open-air retail properties consolidates the Galeries de la Capitale site and expands the overall footprint from 93 acres to approximately 122 acres," said Alex Avery, chief executive officer at Primaris. "Working alongside Immostar, a well-established local real estate developer, this enhanced site configuration provides greater flexibility as master planning of the surrounding excess lands advances and further positions the property for potential future development."

A targeted acquisition in a high-growth market

This acquisition strengthens Immostar's presence in Lebourgneuf, a rapidly growing sector expected to play a key role in Quebec City's economic development. Already recognized as one of the city's main commercial and economic hubs, Lebourgneuf benefits from exceptional accessibility and sustained traffic, reinforcing its attractiveness for both retailers and consumers.

Beyond the acquisition, Immostar intends to optimize and enhance Complexes Capitale with a long-term value creation perspective, aligned with the sector's ongoing growth. Together, Immostar and Primaris are investing in one of Quebec City's most strategic growth corridors.

About Primaris Real Estate Investment Trust

Primaris is Canada's only enclosed shopping-centre-focused REIT, with ownership interests in leading enclosed shopping centres located in growing Canadian markets. The current portfolio totals 15.2 million square feet, valued at approximately $5.2-billion at Primaris's share. Economies of scale are achieved through its fully internal, vertically integrated, full-service national management platform. Primaris is very well capitalized and is exceptionally well positioned to take advantage of market opportunities at an extraordinary moment in the evolution of the Canadian retail property landscape.

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