A major shift is underway for one of downtown Victoria’s most recognizable retail landmarks, as Montreal-based real estate company Leyad takes ownership of The Bay Centre, with plans to re-energize the 37-year-old shopping centre. The company confirmed it has acquired what it calls one of Victoria’s “most iconic and strategically located commercial properties,” a full-city-block complex in the heart of the downtown core along Government Street. Financial terms of the deal were not disclosed. The 420,000-square-foot property was previously owned by Manulife, which purchased it in 2015 for roughly $100 million from LaSalle Investment Management. LaSalle had acquired it in 2010 from Cadillac Fairview. The mall first opened in 1989 as the Victoria Eaton Centre before later adopting its current name. The Bay Centre has long been a fixture in the city’s retail core, but in recent years, some visitors say it has lost its energy. “I have noticed just by coming here that there is a lot of empty stores,” said Paul Christopher. “I feel like there is not as many options as there were before and I feel like the food court has lost its luster,” added Madelyn Harris. Like many shopping centres across Canada, the mall has also felt the impact of changing retail habits and the recent closure of anchor tenant Hudson’s Bay Company, whose departure left a major footprint in the building that still carries its legacy. Leyad says it plans to take a two-pronged approach to the property, separating strategies for the main retail mall and the former Hudson’s Bay space. “We are more of an entrepreneurial organization and we get super involved with local entrepreneurs so we’re basically open for business,” said Henry Zavriyev, president and CEO of Leyad. Zavriyev says the mall itself is not heavily vacant, but there is room to improve variety and tenant mix. “What we would like to see is a more diversity of retailers,” he said. As for the large vacant anchor space, Leyad is exploring a range of possible uses, including non-traditional retail. “A potential concept is an office share in the centre and there is a different experiential exhibit type offerings so for example we’re speaking to a museum about potentially setting something up,” Zavriyev said. John Wilson, CEO of the Greater Victoria Chamber of Commerce, says the acquisition is welcome news for downtown. “There is great opportunity whether it be for attractions or professional services to join the retail sector in here to make it a more diverse mall,” Wilson said. Wilson added the property has significant potential but acknowledges it is in need of reinvention to meet changing consumer expectations. Leyad says it is still early days, but locals could begin seeing changes as soon as 2027. For now, the company says it does not plan to change the Bay Centre name, citing its longstanding connection to the community. “We don’t want to change anything that connects with you nostalgically,” Zavriyev said. “At the moment there are no plans to change the name.”
