Sobeys buys Target facility

Grocery giant to pay $ 50M for distribution centre near Balzac

Grocery giant Sobeys is buying the massive 1.3 million square foot Target distribution centre in Rocky View County near Balzac, the Herald has learned.

Court documents indicate the deal is worth $ 50 million and is part of the process of Target Canada divesting its interests as it exits the country. The deal closes some time this month.

David Kalinchuk, economic development manager at Rocky View County, said the county is very happy that Sobeys is going to take over that “great facility.”

“The whole transportation, warehousing, logistics sector has really taken off for Rocky View as you can imagine,” said Kalinchuk. “CN Rail being probably one of the largest and most significant of those investments with that Calgary Logistics Centre in Conrich.

“So Sobeys, of course, having the depth and breadth in their retail really it’s a great fit. It involves additional investments as well, specific to the food side. That’s fantastic. We take what is a fairly unique property in its size with a good user that will be adding to that investment.”

The centre, located just east of the CrossIron Mills shopping centre, opened in early 2013. It was the distribution centre for about onethird of the 124 Target stores across Canada.

Prior to its opening, it was believed up to 400 to 500 people would be working in the facility.

Lowe’s is purchasing the Target distribution centre in Milton, Ont., for $ 125 million, while Walmart is buying the Target distribution centre in Cornwall, Ont., for $ 80.75 million.

Target operated six stores in Calgary before their closure earlier this year — Forest Lawn, Chinook Centre, Market Mall, Sunridge Mall, Signal Hill Centre and Shawnessy.