As the frenzy of holiday shopping begins, a Quebec commercial developer has taken a page out of the past to bring retail magic to one of Canada's fastest growing cities -- Vaughan, Ontario. The first enclosed regional shopping centre built in Canada in 14 years recently opened its doors to lineups of shoppers who had waited hours to be the first to enter the new 1.2 million-square-foot indoor retail and entertainment mall.

Montreal's Ivanhoe Cambridge and Virginia-based The Mills Corporation own the shopping centre in a 50/50 joint venture. Ivanhoe Cambridge, one of Canada's leading property owners, managers, developers and investors, holds a real estate portfolio of more than 39 million square feet of retail space which includes 50 regional and super-regional shopping centres. As of December 31, 2003, the fair market value of Ivanhoe Cambridge's assets was reportedly over C$6.8 billion. Ivanhoe is a member of CDP Capital, the asset manager for the Caisse de dépôt et placement du Québec, and counts four prominent Canadian pension funds among its shareholders.

The Mills Corporation is a U.S. self-managed real estate investment trust (REIT) that owns, develops, leases, redevelops and manages a portfolio of 38 retail and entertainment destinations totaling approximately 46 million square feet. Mills currently has six projects under development around the world.

"Across the U.S., consumers flock in record numbers to The Mills centres for the innovative blend of retail and entertainment that has redefined the shopping experience," said Laurence C. Siegel, chairman and CEO of The Mills Corporation, referring to the approximately 220 million who visited Mills U.S. centres in 2003. "We are thrilled to bring the excitement and fun of a Mills-branded destination to Canada."

By the official opening of Vaughan Mills this month, the mall was reportedly 93 per cent leased. Located 32 kilometres (20 miles) north of downtown Toronto off the main highway to cottage country, the mall houses the largest Tommy Hilfiger Outlet in the world and will ultimately feature 16 anchor retailers and more than 200 other tenants.

"Vaughan Mills has attracted a number of stores, restaurants and entertainment venues that will be the first of their kind in Canada," said René Tremblay, president and CEO of Ivanhoe Cambridge. "We are delighted to partner with The Mills in bringing these and all the dynamic, innovative Vaughan Mills retailers to Canadian consumers."

A trip to the mall can now be a family outing which includes fishing demonstrations at Bass Pro Shops Outdoor World, go-carting at the NASCAR SpeedPark or bowling at Lucky Strike Lanes. Vaughan Mills is divided into six unique neighbourhoods based on the design theme "Discover Ontario" to celebrate the diversity of the Province of Ontario.

No housing was incorporated into the shopping centre development.

During construction, Vaughan Mills generated 2,500 jobs. The centre will provide approximately 3,500 full- and part-time positions, and is anticipated to add significantly to Vaughan's annual tax revenues.

To ensure the centre's success, veteran marketer Donna Owens was hired as full-time Tourism Director to "boost Vaughan Mills' position as a top tourist destination." Owens previously spent 11 years with the Canadian Tourism Commission developing international marketing campaigns to raise Canada's profile as a premier tourist destination.

"Sixty-eight per cent of U.S. visitors to Canada and 91 per cent of overseas visitors indulge in shopping when travelling to Canada," said Owens. "This is an exceptional time for The Mills to be entering the Canadian marketplace, as tourism regains its growth, and new product offerings are needed to stimulate travel and spending."

And small Canadian retailers were worried about Walmart!