Edmonton developer acquires City Centre Mall, wants to build 1,500 housing units and spa

An Edmonton-based real estate developer has acquired City Centre Mall in a court-approved receivership sale, with the transaction expected to close before the end of the year.

Westrich Pacific says it’s the next big step in the redevelopment of the downtown Edmonton property.

The downtown mall has faced challenges since the pandemic, with multiple stores leaving.

“This investment is a strong signal that the transformation underway in downtown Edmonton is real,” Mayor Andrew Knack said. “When investors see momentum, they follow.”

The plan is to turn the 1.4-million-square-foot area into a “mixed-use redevelopment” featuring residential, retail, entertainment and wellness uses – such as a rooftop spa.

The first phase would see Westrich build about 1,500 new residential units in a tower on the west side of the building — on the former Hudson’s Bay portion of the property. Major construction is slated to begin early next year.

“This is the most exciting project of our careers,” said David Sanche, co-CEO of Westrich Pacific. “Edmonton City Centre has incredible potential, and we believe its transformation can play a meaningful role in the continued revitalization of Downtown Edmonton.

“It is humbling to have the opportunity to work on a project of this scale and impact. We look forward to working alongside City Council and other key partners to make this project come to fruition.”

‘Top priority is safety’

Sanche admitted to CityNews that renovating City Centre Mall will be a challenge. The mall lost two longtime anchor stores — The Bay and Sportchek — during the pandemic.

It’s also facing security issues and challenges with Edmonton’s vulnerable population in the downtown core.

“Facial recognition cameras, including a new security operation,” said Sanche. “So our goal is to make the mall feel safe and attractive. The top priority is safety.”

Sanche says current retailers in the mall and longtime tenants like the movie theatre and Delta Hotel will be a part of development plans going forward.

He couldn’t disclose the price tag of the deal.

Downtown vibrancy has been front and centre this summer, with multiple restaurants blaming city policy for their closure.

The councillor for the area, Anne Stevenson, is eager to see how this project could shape the core.

“I think the most important thing the city can do is ensure that we’re not creating any barriers through zoning or permitting, just ensuring those plans can be accommodated as quicky and easy as possible,” said the Ward O-day’min councillor. “I’m also eager to talk to them about any opportunities to enhance the public realm.”

Some Edmontonians walking outside of the mall Tuesday said they would rather see the space used to serve Edmonton’s homeless population.

“That’s what the city needs more than anything,” said Todd. “You can build all the fancy towers you want, have all the rich people you want living there, you still got all the homeless people living out there on the streets.”

“We need to show people that downtown core has a vibrant community around it,” added Scott. “But if your only goal is to make as much money as possible, you’re going to automatically exclude a lot of people.”

City Centre Mall fell into receivership last year.

–With files from Darcy Ropchan