SmartCentres

SmartCentres is a Canadian real estate investment trust headquartered in Vaughan, Ontario. Its core business is the development, ownership, leasing and management of retail-oriented real estate, particularly suburban power centres. The portfolio has historically been strongly associated with Walmart: most properties have included Walmart as a major or anchor tenant, making the relationship central to SmartCentres' development model, tenant mix and public identity. The business began in 1994 under founder Mitchell Goldhar as FirstPro Shopping Centres. Its early growth was built around efficiently planned retail centres serving suburban communities, often combining a large-format Walmart store with complementary tenants. The format emphasized accessible locations, surface parking and proximity to major roads, reflecting the expansion of big-box retail in Canadian metropolitan areas. By 2011, the company stated that it had opened a new mall approximately every three weeks over the course of its history, and by 2015 it had developed about 50 million square feet of space. SmartCentres used transactions with Calloway REIT to recycle capital and finance further development. Beginning in 2003, FirstPro sold groups of properties to Calloway, including nine centres for $100 million in November 2003, followed by larger transactions in subsequent years. Further sales occurred in 2004, 2005, 2006 and 2008. These transactions substantially increased Calloway's scale and strengthened the business relationship between the two organizations. In 2015, Calloway REIT formally acquired SmartCentres in a transaction reported at approximately $1.1 billion and obtained 24 properties. Calloway subsequently adopted the SmartREIT name, and the trust was renamed SmartCentres REIT in 2017. Although retail power centres remain the foundation of the portfolio, SmartCentres has increasingly pursued diversification into urban, mixed-use and transit-oriented development. Its projects include participation in Vaughan Metropolitan Centre, a planned downtown district in Vaughan, Ontario, as well as StudioCentre, a mixed-use project in Toronto's Leslieville neighbourhood. The company has also considered alternative uses for some retail sites, including warehouse and logistics space. This strategy reflects the changing economics of retail property, the growth of e-commerce and the potential to increase land value through residential, office, transit and community uses. SmartCentres has also experimented with ways to connect physical retail locations with online commerce. Penguin Pick-Up locations were established at a number of SmartCentres properties, including some co-branded with Walmart. These pickup points allowed customers to collect online orders at designated locations, particularly reducing delivery costs for suburban shoppers. The Penguin branding echoed SmartCentres' penguin logo, which depicts a family of penguins carrying shopping bags. As reported in the reference period, the trust operated a large Canadian portfolio of shopping centres and held billions of dollars in assets. Its geographic exposure was concentrated in Ontario, with additional operations in Quebec, British Columbia and other Canadian provinces. The company remains positioned as a major Canadian owner and developer of retail real estate, balancing its historically Walmart-led power-centre platform with mixed-use intensification and other forms of property redevelopment.

SmartCentres traces its origins to FirstPro Shopping Centres, founded in 1994 by Mitchell Goldhar. The company developed a repeatable Canadian retail-property format centered on suburban power centres, with Walmart frequently serving as the principal anchor. These centres typically combined a large-format store with smaller complementary retailers and were placed near major roads to serve growing suburban populations. The company expanded rapidly during the growth of Canadian big-box retail. By 2011, it was described as having opened a new mall roughly once every three weeks over its history. By 2015, it had developed approximately 50 million square feet of space. Its expansion was supported partly by property recycling. Beginning in 2003, FirstPro sold groups of completed or developing properties to Calloway REIT, a smaller Calgary-based trust, in order to raise capital for new construction. The transactions included nine malls for $100 million in 2003, 12 malls for $300 million in 2004, 35 malls for $1.1 billion in 2005, 16 properties worth $1 billion in 2006, and six malls for $375 million in 2008. The 2005 transaction approximately doubled Calloway's size and deepened the relationship between the two businesses. FirstPro changed its name to SmartCentres Inc. in 2006. In 2015, Calloway REIT took over SmartCentres in a deal reported at approximately $1.1 billion and acquired 24 properties. Calloway subsequently changed its identity to SmartREIT and then adopted the SmartCentres REIT name in 2017. The resulting trust retained the SmartCentres brand and its large retail-property platform. SmartCentres' Walmart association has been both a commercial strength and a source of public debate. In the reference period, approximately 72 percent of its properties were anchored by Walmart, while Walmart accounted for about 26 percent of rent and 42 percent of area. The concentration gave the portfolio a recognizable tenant base but also exposed the company to criticism and planning disputes connected with large-format retail development. A proposed power centre in eastern Toronto attracted considerable opposition and was rejected by the Ontario Municipal Board. A Salmon Arm, British Columbia, project was delayed in 2009 because of environmental concerns, although the shopping centre was eventually completed in 2013. Over time, the company moved beyond a purely suburban power-centre model. SmartCentres became one of the principal developers of Vaughan Metropolitan Centre, an emerging central business district in Vaughan, Ontario. Its involvement included support for transit infrastructure, and a bus terminal serving a subway station was named after the company following its funding contribution. The company also became the main developer of StudioCentre, a mixed-use development in Toronto's Leslieville area. It explored converting selected retail properties to warehouse use and pursued opportunities to add residential, office and other higher-density components to existing sites. The company also responded to e-commerce through Penguin Pick-Up. These locations, established at SmartCentres properties and using the company's penguin motif, provided customers with designated collection points for online orders. Some locations were co-branded with Walmart. The model connected physical retail sites with online fulfillment and was intended in part to lower Walmart's delivery costs while offering shoppers a reduced-fee alternative to home delivery. As of the reference period, SmartCentres operated a substantial Canadian portfolio, with the largest share of revenue coming from Ontario, followed by Quebec and British Columbia. Its evolution has therefore been from a focused developer of Walmart-led suburban shopping centres into a broader real estate platform combining retail income, property redevelopment, mixed-use projects and e-commerce-related facilities.

• 2018

  Penguin Pick-Up network reaches 76 locations

  [1]SmartCentresen.wikipedia.org

  The pickup network expanded across SmartCentres properties, including selected Walmart co-branded sites.

• 2017

  Trust renamed SmartCentres REIT

  [1]SmartCentresen.wikipedia.org

  The successor trust adopted the SmartCentres REIT name.

• 2015

  Calloway REIT takeover

  [1]SmartCentresen.wikipedia.org

  Calloway REIT acquired SmartCentres in a transaction reported at approximately $1.1 billion.

• 2013

  Salmon Arm shopping centre completed

  [1]SmartCentresen.wikipedia.org

  A project delayed by environmental concerns was eventually built in Salmon Arm, British Columbia.

• 2011

  Rapid development pace reported

  [1]SmartCentresen.wikipedia.org

  The company was reported to have opened a new mall approximately every three weeks over its history.

• 2006

  Company adopts the SmartCentres name

  [1]SmartCentresen.wikipedia.org

  FirstPro Shopping Centres was renamed SmartCentres Inc.

• 2003

  First property sale to Calloway REIT

  [1]SmartCentresen.wikipedia.org

  FirstPro sold nine malls to Calloway REIT for $100 million as part of a capital-recycling strategy.

• 1994

  FirstPro Shopping Centres founded

  [1]SmartCentresen.wikipedia.org

  Mitchell Goldhar founded the business that would become SmartCentres.

A Canadian retail-property platform built around large, accessible power centres and major big-box anchors, increasingly repositioned toward mixed-use, urban and transit-oriented development.

• Retail real estate · 1994

  Power centres

  SmartCentres' core offering is the suburban power centre: a retail complex designed around a large-format anchor, historically most often Walmart, with additional space for complementary retailers and services. These properties generally emphasize convenient road access, extensive surface parking and a broad catchment area. The format has been the foundation of the company's Canadian portfolio and development model.

• Urban real estate

  Mixed-use developments

  SmartCentres has diversified into projects that combine retail with residential, office, transit and other urban uses. This approach allows the company to intensify selected retail sites and participate in the creation of denser districts. Vaughan Metropolitan Centre and StudioCentre are examples of the company's move beyond stand-alone suburban shopping centres.

• E-commerce logistics

  Penguin Pick-Up

  Penguin Pick-Up locations provide designated collection points for online orders at or near SmartCentres properties. The service links physical retail real estate with e-commerce fulfillment and was particularly associated with Walmart deliveries. Locations began primarily in suburban areas and later appeared in urban settings, including co-branded sites.

• Transit-oriented development

  Vaughan Metropolitan Centre

  Vaughan Metropolitan Centre is a planned central business district in Vaughan, Ontario, in which SmartCentres has been one of the principal developers. The project represents the company's participation in higher-density, transit-connected urban development rather than only conventional suburban retail.

• 2009

  Environmental concerns delay Salmon Arm project

  A SmartCentres shopping-centre development in Salmon Arm, British Columbia, was delayed amid environmental concerns. The project was eventually constructed in 2013.

  Source

• 2000

  Opposition to eastern Toronto power-centre proposal

  A proposed SmartCentres power centre in eastern Toronto generated substantial opposition, in part reflecting wider concerns about large-format retail development and the company's close association with Walmart. The proposal was ultimately rejected by the Ontario Municipal Board.

  Source

Read more

• 2018Penguin Pick-Up

  Canada

  SmartCentres used its penguin brand identity in a network of pickup locations designed to connect online ordering with convenient collection at retail properties. Several locations were associated with Walmart and were intended to provide a lower-cost alternative to home delivery.

  Outcome. The network had reached 76 locations by January 2018, with expansion from suburban sites into selected urban areas.

  Source

• 2017

  Adopt the SmartCentres REIT identityStrategy

  Background

  Following the Calloway transaction and the intermediate SmartREIT identity, the trust aligned its corporate name with the established SmartCentres property brand.

  Action taken

  The trust changed its name to SmartCentres REIT.

  Aftermath

  The SmartCentres name became the principal identity for the combined Canadian retail real estate platform.

  Source

• 2015

  Calloway REIT acquires SmartCentresM&A

  Background

  After years of property transactions between the two organizations, Calloway REIT moved to formally take over SmartCentres.

  Action taken

  Calloway acquired SmartCentres and 24 properties in a transaction reported at approximately $1.1 billion.

  Aftermath

  Calloway adopted the SmartREIT identity and later renamed the trust SmartCentres REIT, preserving the SmartCentres brand.

  Reported transaction value. $1.1 billion (2015)

  Source

• 2003

  Begin capital recycling through property salesStrategy

  Background

  The company sought additional funds to support continuing retail-centre construction and expansion.

  Action taken

  FirstPro began selling completed or developing shopping centres to Calloway REIT, starting with nine malls for $100 million.

  Aftermath

  The sales established a multi-year relationship with Calloway and helped the business recycle capital into further development.

  Property sale value. $100 million (November 2003)

  Source

• Diversify into urban and mixed-use developmentStrategy

  Background

  Changing retail conditions and the need to unlock value from large land holdings encouraged the company to pursue uses beyond conventional suburban power centres.

  Action taken

  SmartCentres expanded its involvement in projects such as Vaughan Metropolitan Centre and StudioCentre and considered warehouse conversions at selected properties.

  Aftermath

  The strategy broadened the company's positioning from a Walmart-led retail landlord toward a more diversified development platform.

  Source

• 2018

  Penguin Pick-Up expands across SmartCentres properties[1]SmartCentresen.wikipedia.org

  Product launch

  The Penguin Pick-Up network had reached 76 locations, including suburban sites and selected urban and Walmart co-branded locations.

• 2015

  Calloway REIT takes over SmartCentres[1]SmartCentresen.wikipedia.org

  M&A

  Calloway REIT formally acquired SmartCentres in a transaction reported at approximately $1.1 billion and acquired 24 properties.

• 2009

  Salmon Arm development delayed over environmental concerns[1]SmartCentresen.wikipedia.org

  Regulation · Other

  Construction of a SmartCentres shopping centre in Salmon Arm, British Columbia, was delayed amid environmental concerns before the centre was eventually built.

• 2006

  Business renamed SmartCentres[1]SmartCentresen.wikipedia.org

  Other

  FirstPro Shopping Centres adopted the SmartCentres name as the retail-property platform expanded.

• 2003

  FirstPro begins selling properties to Calloway REIT[1]SmartCentresen.wikipedia.org

  M&A

  The company began selling groups of shopping centres to Calloway REIT to release capital for additional construction and development.

• 2000

  Toronto-area power-centre proposal rejected[1]SmartCentresen.wikipedia.org

  Regulation · Other

  A proposed SmartCentres power centre in eastern Toronto faced substantial opposition and was ultimately rejected by the Ontario Municipal Board.

• 1994

  SmartCentres founded as FirstPro Shopping Centres[1]SmartCentresen.wikipedia.org

  Other

  Mitchell Goldhar founded the retail-centre development business that later became SmartCentres.

1. 1SmartCentresen.wikipedia.org