Canadian open-air grocery-anchored shopping centres owner First Capital REIT has agreed to be acquired by KingSett Capital and Choice Properties REIT in a C$9.4bn (€5.82bn) deal.
Under the terms of the deal, private equity real estate investor KingSett Capital will acquire First Capital’s shares, including a $4.4bn portfolio of needs-based and high-street retail assets, alongside development and financial interests. Simultaneously, Choice Properties will acquire approximately $5bn of First Capital’s necessity-based neighbourhood shopping centres.
The price represents a 12% premium to First Capital’s closing price on 15 April 2026.
Funding for KingSett’s acquisition will be provided by the KingSett Real Estate Growth LP No 8 fund and fully underwritten debt financing from TD Securities and Desjardins Group.
Canadian real estate investment trust Choice Properties intends to finance its acquisition through a combination of debt and equity.
Paul Douglas, chair of First Capital’s board of trustees, said: “We are pleased to deliver immediate value to our investors through this transaction.
“Supported by the recommendation of a special committee comprised of independent trustees, the First Capital board believes this transaction is in the best interests of First Capital unitholders. Accordingly, the board recommends that unitholders vote in favour of the transaction.”
Adam Paul, First Capital’s president and CEO, said: “This is an excellent transaction for our investors, which recognises their longstanding support and commitment to First Capital.
“I am deeply grateful to our employees – many of whom will continue to support the assets acquired by KingSett and Choice – as well as to my partners on the executive leadership team, who have remained singularly focused on what was in the best interests of First Capital unitholders, and whose diligence and work ethic were critical in bringing us to this point.”
Rob Kumer, CEO at KingSett Capital, said: “This transaction comes at a time when we are seeing renewed optimism and positive momentum in Canadian real estate.
“We have partnered with Choice Properties to align the right assets with our respective strategies to deliver maximum value to First Capital’s unitholders. We look forward to working with First Capital’s tenants, partners and other stakeholders in the years ahead.”
Rael Diamond, president and CEO of Choice Properties, said: “This is an exciting and transformative transaction that will solidify Choice Properties as Canada’s leading REIT. Choice Properties is acquiring best-in-class, necessity-based neighbourhood shopping centres that will significantly strengthen our portfolio.
“We believe this is a unique and compelling opportunity that will increase our presence in urban markets and further diversify our tenant base.”
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