True North ready to close on agreement for $650M Portage Place purchase, redevelopment project

The real estate arm of the company that owns the Winnipeg Jets is pulling the trigger on its option to purchase the beleaguered Portage Place mall in the city's downtown and redevelop it at an estimated cost of $650 million.

True North Real Estate Development announced Friday that it intends to close next week on its purchase of the mall from Vancouver's Spruceland Mall Limited Partnership at an undisclosed price along with a parallel purchase of the parkade below the mall and the rights to build above it from The Forks North Portage Partnership for $34.5 million.

Jim Ludlow, president of True North Real Estate, said the deals will place all of the mall's assets in the hands of a single owner for the first time since Portage Place was built in the 1980s.

"For the first time in its history, 100 per cent of the control of this asset will be in one place," he saidat a Friday morning news conference on the third floor of the mall.

That, he said, will pavethe way for a redevelopment that will see a health-care tower rise above the east side of the structure and a residential tower on the west side, along with a makeover of the three-storey central portion of the structure and replacement of the glass atrium at Edmonton Street with an open-air connection between Portage Avenue and Central Park.

True North first proposed the project in March 2023 and spent the last 18 months conducting due diligence. The company twice requested extension of a deadline to exercise its purchase options.

Ludlow said work on the project will begin in 2025 and wrap up in 2028. That includes the construction of a health-care tower that will include a primary care clinic, surgical space, an addictions treatment clinic, an expanded Pan Am Clinic and other medical services.

The residential tower, which will be built in partnership with the Southern Chiefs' Organization, is slated to have200 units, with up to 80designated as affordable. It will be run by a non-profit organization called Project 92, jointly managed by True North and the SCO.

This towerwill rise 13storeys above the west end of the existing two-storey mall,kitty-corner from the former Hudson's Bay Co. building, which the SCO now owns and intends to convert into a mixed-use project called Wehwehneh Bahgahkinahgohn, at a cost of at least $200 million.

The middle of the mall will be converted intocommunity centres and offices for community organizations, with a nominal amount of retail space and some food services, according to the plans.

All three levels of government are contributing to the project.

Saint Boniface-Saint Vital Liberal member of Parliament Dan Vandalconfirmed the federal government will provide $10 million toward community spaces in the project and said a further $17 million could flow from the Canada Mortgage Housing Corporation toward the residential tower.

The provincial government is supporting the project with a 35-year lease of Winnipeg Regional Health Authority and Shared Health space in the health-care tower. Premier Wab Kinew said in February the leases represent $77 million in additional health-care spending.

Emily Coutts, Kinew's principal secretary, said the provincial government will not disclose the totaldollar value of the lease payments, because they were the subject of negotiations with True North.

Ludlow said while he does not recall the precise figure, the lease payments will be in the tens of millions of dollars.

"It's a 300,000-square-foot facility that is purpose built and it's witha 35-year term, so for sure," he said.

The City of Winnipeg has agreed to a $40-millionassistance package that includes up to$14 million worth of tax increment financing over 25 years, $10 million worth of housing grants and $16 million worth of infrastructure commitments in and around the property.

True North ready to complete purchase of Winnipeg's Portage Place mall

4 days ago

Duration 1:51

The real estate arm of the company that owns the Winnipeg Jets is pulling the trigger on its option to purchase the beleaguered Portage Place mall in the city's downtown and redevelop it at an estimated cost of $650 million.