Choice Properties and private equity firm KingSett Capital have agreed to acquire First Capital REIT in a cash-and-stock transaction valued at approximately CAD9.4bn ($6.85bn), including debt, according to a report by Bloomberg.
Under the terms of the deal, First Capital’s portfolio will be split between the buyers. Choice Properties will acquire the REIT’s grocery-anchored retail assets, valued at around CAD5bn, while KingSett Capital will take ownership of the remaining assets in a private transaction worth about CAD4.4 billion.
First Capital operates open-air, necessity-based shopping centres across Canada, with a focus on grocery-anchored retail assets that investors typically favour for their defensive income characteristics.
The transaction implies a value of CAD19.24 per share in cash plus CAD5.16 per share in Choice Properties stock, representing an 11.7% premium to First Capital’s closing price on April 15, according to calculations based on the deal terms.
First Capital shares rose more than 8% following the announcement, while Choice Properties gained around 1% in morning trading.
The deal is expected to close in the second half of 2026.
