Community Shopping Centre Repositioning
Woodbridge Square
Category
- Value Creation
- Retail
- 112,462 SF
Ownership
- Joint Venture - Morguard
- REIT and Private Client
Services
- Asset Management
- Development
- Leasing
Modernizing a rental commercial property co-owned by Morguard REIT has unlocked substantial value - including an increase in leasable space and dramatic savings in operating costs for this "boutique style" community shopping centre. Our expertise in both retailing and development gave a fresh look to this community shopping centre located north of Toronto.
The Opportunity
Woodbridge Square, a 113,000-square-foot community shopping centre in Vaughan, ON, required a strategic repositioning to maintain market share and better compete against new retail development in the growing community north of Toronto. The 25-year-old centre was challenged with rising vacancy and decreasing cash flow.
The Value Proposition
The Trust created a fully managed plan that would realize value creation from redevelopment, remerchandising, and transitioning the property back to its original roots as a grocery-anchored community shopping centre. The plan identified three main initiatives to deliver the desired results:
-
- renovate the facade to achieve a more contemporary look
- secure a new grocery anchor tenant
- lead a remerchandising strategy identifying a co-tenancy mix that would improve the property’s performance and draw new customers
The Result
Achieved 100% occupancy, secured a long-term grocery anchor (Nations Fresh Food), and increased rental rates. Additionally, the property is positioned to unlock future value by leveraging entitlements for high density, mixed-use purposes in alignment with the new City of Vaughan Official Master Plan.
Increased property value by 30%, which allowed full project funding secured by a 10-year mortgage and long-term cash flow stability for unitholders and the co-owner.
Created a contemporary and well-trafficked, grocery-anchored community shopping centre that has successfully attracted new customers from its primary and secondary trade areas.
