Leyad Doubles Down on Grocery Real Estate in Strategic Loblaw Deal

EDMONTON, AB – March 31, 2026 – In a significant move that expands its national footprint and reinforces its focus on necessity-based assets, real estate investment firm Leyad has announced the acquisition of a 387,000-square-foot portfolio of seven single-tenant grocery properties fully leased to Loblaw Companies Limited. The off-market transaction, acquired from a private U.S.-based vendor, marks Leyad's strategic entry into British Columbia and the Yukon Territory.

Following the deal, Loblaw becomes Leyad's largest tenant by revenue, cementing a strategy that increasingly views grocery-anchored properties as the bedrock of a resilient commercial real estate portfolio. The acquisition expands Leyad's presence to eight provinces and the Yukon, solidifying its status as a major player in Canada's retail property landscape.

A Strategic Bet on Necessity Retail

This acquisition is a clear signal of Leyad's confidence in the enduring stability of the grocery sector. In a market facing economic uncertainties, institutional investors have shown sustained demand for properties anchored by essential services, and this portfolio represents a prime example of such a defensive asset class.

"With this acquisition, we are doubling down on the most resilient segment of retail real estate," said Henry Zavriyev, CEO of Leyad, in a statement. "These are established, high-performing locations that continue to play an essential role in the daily lives of the communities they serve."

The seven properties, operating under Loblaw banners such as Real Canadian Superstore, Real Atlantic Superstore, and Wholesale Club, are secured by triple-net leases. This lease structure places the responsibility for all capital expenditures and operating costs directly on the tenant, Loblaw, providing Leyad with a stable and predictable income stream. With a weighted average lease term of approximately six years, the deal ensures long-term cash flow from one of Canada's most creditworthy retailers.

An Aggressive Cross-Canada Expansion

This portfolio acquisition is not an isolated event but the latest move in a period of intense and strategic growth for the Montreal-based firm. Over the past two years, Leyad has been in a self-described "major growth mode," executing a series of high-value acquisitions that have dramatically scaled its holdings across the country. This latest deal is its second major retail acquisition in just two weeks.

This aggressive expansion has included several landmark shopping centers. In February 2026, Leyad acquired the 1-million-square-foot St. Vital Centre in Winnipeg for $160.5 million. This followed the 2025 acquisitions of St. Albert Centre and Londonderry Mall in Edmonton, as well as the Pen Centre in St. Catharines, which itself exceeds one million square feet. Earlier in March 2026, the company also purchased the 37-store Lloyd Mall in Lloydminster, Alberta.

Further demonstrating its geographic and asset-class diversity, Leyad's recent activity includes the $94 million acquisition of Cornerstone Prince Albert in Saskatchewan (2024), the $61.5 million purchase of Wheeler Park Power Centre in Moncton, New Brunswick (2023), and the acquisition of North Sydney Mall in Nova Scotia (2024). This buying spree highlights a clear strategy to build a robust, national portfolio of high-quality commercial assets.

Coast to Coast to Territory: Entering New Markets

The geographic scope of the Loblaw portfolio is a key feature of the transaction. Spanning British Columbia, Manitoba, New Brunswick, Nova Scotia, Saskatchewan, and the Yukon, it significantly broadens Leyad's operational map. The firm's entry into British Columbia and the Yukon is particularly noteworthy, planting a flag in two of Canada's most dynamic regions.

Rather than undertaking new development, Leyad's strategy here is to acquire proven assets. The seven grocery stores are described as being located on the primary commercial arteries of their respective neighborhoods, serving as core retail hubs for their communities. By acquiring these established locations, Leyad mitigates market-entry risk while immediately capitalizing on existing consumer traffic and brand loyalty. As part of the transaction, Leyad will also assume property management duties for the newly acquired assets, ensuring direct oversight of their performance.

The Landlord-Tenant Dynamic with Loblaw

Elevating Loblaw to its largest tenant by revenue deepens the relationship between the real estate investor and Canada's leading food and pharmacy retailer. This partnership aligns with the strategies of both companies. For Leyad, it secures a top-tier tenant committed to its locations. For Loblaw, it fits within a broader corporate strategy of focusing on its core retail operations.

This is underscored by Loblaw's recently announced $2.4 billion investment program aimed at expanding and modernizing its nationwide store network. The triple-net lease structure of the acquired portfolio complements this plan perfectly, as Loblaw retains control over store maintenance, renovations, and capital improvements, ensuring its locations remain competitive and aligned with its brand standards. This symbiotic relationship allows each party to focus on its expertise: Leyad on real estate investment and management, and Loblaw on serving Canadian consumers. Before this deal, grocery tenants already represented nearly 10% of Leyad's retail portfolio, a figure that will now increase substantially and further enhance the defensive income characteristics of its holdings.