KingSett Capital, Choice Properties REIT To Buy First Capital REIT In $9.4B Deal

In a landmark deal, private equity real estate investment firm KingSett Capital and retail-focused Choice Properties REIT (TSX: CHP.UN) announced last week that they had partnered and entered into an agreement to acquire First Capital REIT (TSX: FCR.UN) in a $9.4 billion transaction inclusive of debt. Unitholders of First Capital will receive $19.24 in cash and 0.3186 units of Choice Properties per First Capital unit, which totals to $24.40 per First Capital unit based on the closing unit price of Choice Properties on April 15, according to a joint press release. The companies said that the transaction price represents a premium of 17% on First Capital’s 20-day volume-weighted average price through April 15, a premium of 8% on First Capital’s Net Asset Value (NAV) of $22.57 per unit, a 12% premium on First Capital’s closing unit price on April 15, and a 21% premium on First Capital’s 90-day volume-weighted average price through April 15. As of December 31, 2025, First Capital’s portfolio consisted of 21.8 million square feet of gross leasable area in 136 neighbourhoods across the country. The transaction is the latest that sees a publicly-traded REIT being swallowed up and taken private. Earlier this year, Minto Group and Crestpoint Real Estate Investments announced that they were acquiring Minto Apartment REIT for $2.3 billion, while CLV Group and Singaporean sovereign wealth fund GIC announced last year that they were acquiring InterRent REIT for $4 billion. But both of those transactions are dwarfed by this deal, which sees Canada’s largest REIT by market cap (Choice) partnering with private equity (KingSett) to buy Canada’s fifth-largest REIT by market cap (First Capital). Choice Properties REIT Choice Properties REIT — of which George Weston Limited is a majority unitholder — is acquiring approximately $5.0 billion of high-quality retail assets from First Capital REIT. The portfolio of both REITs were retail-focused and are thus a natural fit to be merged. Cho…