SmartCentres

Last updated
SmartCentres Real Estate Investment Trust
Company type Public
TSX:  SRU.UN
S&P/TSX Composite Component
Industry Real estate
Founded1994
Founder Mitchell Goldhar
Headquarters
Vaughan, Ontario
,
Canada
Key people
 Mitchell Goldhar (Executive Chairman & CEO)
Revenue$728 million CAD (2016)
Total equity $4.74 billion CAD (2019)
Number of employees
300 (2016)
Website http://www.smartcentres.com

SmartCentres Real Estate Investment Trust is a Canadian real estate investment trust, based in Vaughan, Ontario. It specializes in retail real estate, especially power centres. Almost all of its malls have Walmart as a tenant; [1] SmartCentre's logo features a family of penguins with shopping bags.

Contents

SmartCentres cobranded Penguin Pickup with Walmart at a lot of the SmartCentres locations, to merge Bricks & Mortar and e-commerce.

It is listed on the Toronto Stock Exchange (symbol SRU.UN), with a market capitalization of about $4.74 billion as of February 2019.

History

SmartCentres Logo.png
Former logo
SmartCentres Montreal Decarie - 01.jpg
A SmartCentre in Montreal
SmartCentresRichmondHill2.jpg
SmartCentre in Richmond Hill, Ontario
SmartCentresMarkham.jpg
SmartCentre in Markham

SmartCentres was founded in 1994 by Mitchell Goldar, as FirstPro Shopping Centres. [2] It was renamed SmartCentres Inc. in 2006. In 2015, it was taken over by Calloway REIT, which then renamed itself SmartREIT. It changed its name to SmartCentres REIT in 2017.

As of 2011, SmartCentres had opened a new mall once every 3 weeks for its history. [1] As of 2015, it had developed 50 million square feet of space. [3]

Relationship with Calloway REIT

In 2003, SmartCentres (then FirstPro) began to sell some of its malls to Calloway REIT, then a small REIT based in Calgary, to raise additional funds for construction. [1] Its first transaction was the sale of nine malls for $100 million in November 2003. [4] In 2004, 12 malls were sold for $300 million. [5] In 2005, it sold 35 malls for $1.1 billion. [6] This transaction doubled the size of Calloway, and led to Goldar greatly increasing his control and equity stake in Calloway. [7] In 2006, SmartCentres sold 16 properties, worth $1 billion, to Calloway. [8] In 2008, it sold 6 malls for $375 million. [6]

In 2015, SmartCentres was formally taken over by Calloway REIT for $1.1 billion. [3] As a result of the deal, Calloway acquired 24 properties.

Controversies

SmartCentres has been involved in a number of controversial developments, often because of its close association with Walmart. In the late 2000s, there was considerable opposition to a SmartCentres plan to build a power centre in eastern Toronto. [9] The plan was eventually turned down by the Ontario Municipal Board. In 2009, its shopping mall in Salmon Arm, British Columbia was delayed because of environmental concerns. [10] The mall was eventually built in 2013.

Properties

SmartCentres properties are generally suburban power centres, with Walmart as a lead tenant. As of 2016, 72% of SmartCentres properties were anchored by Walmart, with Walmart responsible for 26% of rent and 42% of area. [11] However, in recent years, SmartCentres has been diversifying into more urban and mixed-use properties. [9] For instance, SmartCentres is one of the main developers of the Vaughan Metropolitan Centre, a planned central business district for Vaughan, Ontario, a Toronto suburb, where a bus terminal serving a subway station is named after the company, who contributed funding to its construction. SmartCentres is also the main developer of StudioCentre, a mixed-use development in the Leslieville neighbourhood of Toronto. SmartCentres has also considered converting some of its properties into warehouse space. [12]

As of 2017, SmartCentres had 154 shopping centres and $9.4 billion worth in assets. 60% of its revenue was from Ontario, 15% was from Quebec, 9% was from British Columbia, and the other 16% was from the rest of Canada. [13]

Penguin Pick-Up

A number of online delivery pick-up locations, called Penguin Pick-Ups, are located in SmartCentres properties (the locations are owned by Mitchell Goldhar, [14] the SmartCentres chairman, and use the SmartCentres penguin motif). [15] As of January 2018, there are 76 such locations. [16] The original locations were primarily suburban, but some newer locations have been located in urban areas, including some co-branded with Walmart. [17] The locations principally exist to lower Walmart's delivery costs; Walmart charges for home delivery, but only charges a reduced fee for delivery to a Penguin Pick-Up. [17]

Related Research Articles

<span class="mw-page-title-main">Walmart</span> American multinational retail corporation

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores in the United States, headquartered in Bentonville, Arkansas. The company was founded by brothers Sam and James "Bud" Walton in nearby Rogers, Arkansas in 1962 and incorporated under Delaware General Corporation Law on October 31, 1969. It also owns and operates Sam's Club retail warehouses.

Shoppers Drug Mart Inc., commonly known as Shoppers is a Canadian retail pharmacy chain based in Toronto, Ontario. It has more than 1,300 stores in ten provinces and two territories.

<span class="mw-page-title-main">Loblaw Companies</span> Canadian retail company

Loblaw Companies Limited is a Canadian retailer encompassing corporate and franchise supermarkets operating under 22 regional and market-segment banners, as well as pharmacies, banking and apparel. Loblaw operates a private label program that includes grocery and household items, clothing, baby products, pharmaceuticals, cellular phones, general merchandise and financial services. Loblaw is the largest Canadian food retailer, and its brands include President's Choice, No Name and Joe Fresh. It is controlled by George Weston Limited, a holding company controlled by the Weston family; Galen G. Weston, is the chair of the Loblaw board of directors, as well as chair of the board of directors and CEO of Canada-based holding company George Weston.

<span class="mw-page-title-main">Scarborough Town Centre</span> Shopping mall in Ontario, Canada

Scarborough Town Centre (STC) is a shopping mall in Toronto, Ontario, Canada. Central to the Scarborough City Centre district, it is adjacent to Scarborough Centre station, the Scarborough Centre Bus Terminal and the CTV Toronto studios (9 Channel Nine Court). Opened in 1973, the mall is the fourth largest shopping mall in Canada and third in Toronto by retail space.

Towers, operating as Bonimart in Quebec, was a Canadian discount department store chain owned by the Oshawa Group, a now-defunct grocery retailer and distributor.

<span class="mw-page-title-main">Centre Laval</span> Shopping mall

Centre Laval is a shopping mall located in the Chomedey district of Laval, Quebec, Canada, at the corner of Saint-Martin West and Le Corbusier boulevard. It is a 10-minute walk from the Montmorency metro station in nearby Laval-des-Rapides. Centre Laval is paired with Quartier Laval, a power centre across the street owned by the same company, with which it makes a shopping complex called DUO.

Walmart Canada is a Canadian retail corporation and the Canadian branch of the U.S.-based multinational retail conglomerate Walmart. Headquartered in Mississauga, Ontario, it was founded on March 17, 1994, with the purchase of the Woolco Canada chain from the F. W. Woolworth Company.

<span class="mw-page-title-main">RioCan Real Estate Investment Trust</span> Canadian real estate investment trust

RioCan Real Estate Investment Trust is the second-largest real estate investment trust (REIT) in Canada. It has an enterprise value of approximately $14 billion, and owns 289 primarily retail properties, with a net leasable area of 44 million square feet. The company properties are located across Canada. The current chief executive officer is Jonathan Gitlin.

The Cadillac Fairview Corporation Limited, branded as Cadillac Fairview, is a Canadian company that invests in, owns, and manages commercial real estate, mainly in Canada and the United States. As of March 2017, the company had 73 properties, encompassing 50 million square feet, worth over $40 billion. As of September 2017, Cadillac Fairview's portfolio consisted of 60% Canadian retail and 26% Canadian office buildings. Cadillac Fairview is wholly owned by the Ontario Teachers' Pension Plan.

<span class="mw-page-title-main">The Centre (Saskatoon)</span> Shopping mall in Saskatchewan, Canada

The Centre is a major shopping mall located south-east of the junction of Circle Drive and 8th Street in Saskatoon, Saskatchewan in the Wildwood neighbourhood. Sometimes commonly referred to as The Centre At Circle And 8th or The 8th Street Mall It is currently anchored by Sport Chek, Saskatoon Co-op, Rainbow Cinemas, the Centre Cinemas, Shoppers Drug Mart, Best Buy, Indigo Books and Music and Dollarama. Until 2003–2005, Canadian Tire and Walmart were also part of this mall. They both moved to the big box development of Preston Crossing; a Zellers department store that had operated in the west end of the mall since it was built in the early 1970s subsequently relocated from its original location to occupy the vacated Walmart location at the east end. The Zellers has since closed and has been converted into Target, which also subsequently closed. The Centre boasts more than 90 shops and services, several art display spaces in Centre East, and a 2-level temperature-controlled underground parkade.

<span class="mw-page-title-main">Burlington Centre</span> Shopping mall

Burlington Centre is a 721,000 square feet (67,000 m2) shopping mall located in Burlington, Ontario, Canada. It is one of the two enclosed malls in Burlington, Ontario, the other being the Mapleview Centre. The stores at Burlington Centre include Hudson's Bay, Homesense, Old Navy and Winners. It has two floors, the upper floor covers the wing leading to the food court, the floor above the food court area, and the second floor of Hudson's Bay. The Hudson's Bay store gained national media attention in 2021 for its Zellers pop-up shop.

Unicity Mall was an enclosed shopping mall in Winnipeg, Manitoba. It was named for the 1972 unicity restructuring of city management.

<span class="mw-page-title-main">Cedarbrae Mall</span> Shopping mall in Ontario, Canada

Cedarbrae Mall is a shopping mall in Toronto, Ontario, Canada. It is located at the corner of Markham Road and Lawrence Avenue East in the Scarborough district. In terms of size, Cedarbrae Mall may be the eighty-ninth largest shopping mall in Canada with a floor area of 548,000 sq ft (50,911 m2). It is anchored by No Frills and Canadian Tire.

<span class="mw-page-title-main">Honeydale Mall</span> Shopping mall in Ontario, Canada

Honeydale Mall was a community shopping mall in Toronto, Ontario, Canada. It was located at the intersection of Dundas Street and The East Mall Crescent. It served the Eatonville neighbourhood of Etobicoke district.

<span class="mw-page-title-main">Target Canada</span> Defunct Canadian discount department store chain

Target Canada Co. was the Canadian subsidiary of the Target Corporation, the eighth-largest retailer in the United States. Formerly headquartered in Mississauga, Ontario, the subsidiary was formed with the acquisition of Zellers store leases from the Hudson's Bay Company (HBC) in January 2011. Target Canada opened its first store in March 2013, and was operating 133 locations by January 2015. Its main competition included Walmart Canada, Loblaws, Shoppers Drug Mart, and Canadian Tire.

Mitchell Goldhar is a Canadian billionaire and businessman.

<span class="mw-page-title-main">First Capital REIT</span>

First Capital REIT is a Canadian public real estate company, specializing in retail real estate, and based in Toronto, Ontario. It is one of the largest retail landlords in Canada.

Morguard Corporation is a Canadian real estate company, based in Mississauga, Ontario. It owns retail, residential, office, industrial, and hotel properties, as well as managing real estate and financial investments for institutional investors. As of October 2017, it owned $9.4 billion in real estate, and managed an additional $12.6 billion.

<span class="mw-page-title-main">H&R REIT</span>

H&R Real Estate Investment Trust is a Canadian open-ended real estate investment trust, specializing in commercial real estate, and based in Toronto, Ontario. It is the third largest REIT in Canada by market capitalization. H&R's portfolio includes 40 office properties, 161 retail properties, and 105 industrial properties and 11 other properties, with a total value of $13 billion. It is listed on the Toronto Stock Exchange.

References

  1. 1 2 3 "Mr. SmartCentres, Mitch Goldhar, gives Canadians what they want". The Globe and Mail. 2011-10-27. Retrieved 2018-01-12.
  2. ↑ "SmartCentres Inc.: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 2018-01-12.
  3. 1 2 "The man who brought Wal-Mart Inc to Canada sells property for $1.16 billion". Financial Post. 2015-04-17. Retrieved 2018-01-12.
  4. ↑ "Once ignored, REIT now a major player". The Globe and Mail. 2004-12-07. Retrieved 2018-01-18.
  5. ↑ "Calloway to buy malls from First Pro". The Globe and Mail. 2004-03-11. Retrieved 2018-01-12.
  6. 1 2 "Calloway REIT downsizes deal with Wal-Mart and ..." Welland Tribune. 2008-04-11. Retrieved 2018-01-12.
  7. ↑ Decloet, Derek (2005-04-27). "Investors could sour on Goldhar's sweet deal with Calloway". The Globe and Mail. Archived from the original on 2005-11-02. Retrieved 2024-02-25.
  8. ↑ "Calloway buys Wal-Mart malls for $1-billion". The National Post. 2006-10-27.
  9. 1 2 Hume, Christopher (2013-05-16). "SmartCentres hopes there is life after Walmart — Hume". The Toronto Star. ISSN   0319-0781 . Retrieved 2018-01-12.
  10. ↑ "Opponents to new mall cheer Salmon Arm environmental review". The Globe and Mail. 2009-12-14. Retrieved 2018-01-12.
  11. ↑ "SmartREIT Annual Report 2016" (PDF).
  12. ↑ "'Jury is still out' on how malls will adapt to ecommerce: SmartCentres REIT CEO - Article - BNN". BNN. 2017-11-09. Retrieved 2018-01-12.
  13. ↑ "SmartCentres 2017 Annual Report" (PDF).
  14. ↑ "Walmart and Penguin Pick-Up launch co-branded locations to make urban grocery shopping easier". www.newswire.ca. Retrieved 2018-09-19.
  15. ↑ "Review: SmartCentres' Penguin Pick-Up". RETAIL INSIDER. Retrieved 2018-01-18.
  16. ↑ "Penguin Pick-Up - A SmartCentres Company | Penguin Pick-Up". www.penguinpickup.com. Retrieved 2018-01-18.
  17. 1 2 "Wal-Mart opens new front in growing battle over e-commerce". The Globe and Mail. 2018-01-13. Retrieved 2018-01-18.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.