Primaris REIT To Spend $50M To Repurpose 5 Hudson's Bay Stores That Saw No Bids

Primaris REIT, the landlord behind nine Hudson’s Bay locations in Canada, is now taking charge of five former HBC stores that failed to attract any bidders. After Hudson’s Bay filed for creditor protection on March 7 and began liquidating assets, Primaris said it saw no offers for five of its leases and has taken full control of those sites as of June 16. These stores are located in Ontario at Cataraqui Town Centre and Place d’Orleans, in Quebec at Les Galeries de la Capitale, and in Alberta at Medicine Hat Mall and Sunridge Mall.

Taking back these stores means Primaris’s occupancy rate will drop from about 93.2 percent to roughly 89.5 percent. Those five locations alone cover 532,100 sq ft and had been bringing in an estimated $5.5 million in annual revenue and $3.9 million in operating income. With the leases now disclaimed, Primaris expects this revenue to disappear until new tenants move in or the space is repurposed.

To bring these spaces back into use, Primaris plans to invest between $50 million and $60 million. Legal filings show the company will redevelop the stores—either by subdividing large spaces or demolishing sections to build something new. As a result, the total leasable space is set to drop to about 475,000 sq ft. The goal is to lease out the revamped space by the second quarter of 2026 and begin collecting rent in early 2027.

Primaris also notes that reclaiming these leases frees up large parcels of land—roughly 13 acres devoted to parking and nearly 71 acres with “no‑build” restrictions tied to Hudson’s Bay operations. Without those limits, the company now sees potential to expand or sell land for housing, hotels, or denser retail uses, and to enhance the surrounding malls by bringing in stronger new tenants.

In the meantime, four other Hudson’s Bay leases within the Primaris portfolio have attracted bids that meet minimum standards. These include locations in Ontario (Conestoga Mall and Oshawa Centre), Alberta (Southgate Centre), and British Columbia (Orchard Park). Primaris says it cannot yet confirm details about those prospective renters, as it awaits more information, but says it will share updates once the bids and plans are clearer.

Primaris emphasizes that the departure of Hudson’s Bay, Canada's last traditional department store chain, opens new opportunities. Its leaders say they have long prepared for this shift, pointing to past disappearances of Zellers, Sears, and Target. With more control and fewer restrictions, Primaris believes it can boost the value and income from these anchor sites and improve conditions for neighboring mall tenants and investors alike.