Plaza Retail REIT has closed its purchase of a 50 per cent interest in approximately 100 acres of land in St. John’s, Newfoundland that will be developed into “The Shoppes at Galway,” the retail portion of the Galway master planned community.

Valued at $21.1 million, about 62 per cent of the purchase price will be funded by third party financing.

DewCor and Plaza are the duo land vendors who aim to turn the centre into more than 700,000 square feet of Canada’s top retailers.

The centre will be located at the corner of Pitts Memorial Highway and Ruth Avenue, and will be built in several phases, with construction of the initial portion of the development expected to begin in mid-2016. Phase one will consist of about 250,000 square-feet of retail space.

“The Shoppes at Galway represent a substantial investment by Plaza and promises to significantly alter the retail landscape in St. John’s, one of our preferred retail markets in Atlantic Canada,” said Michael Zakuta, chief executive officer of Plaza. “Upon completion, this project will be a landmark site for Plaza and will contribute positively to our cash flows.”