By Adriano Marchese
First Capital REIT agreed to be acquired by and split between Choice Properties REIT and KingSett Capital in a deal valued at 9.4 billion Canadian dollars ($6.84 billion), including debt.
Under the terms of the agreement, the Canadian REIT said Thursday that its unitholders will receive a total consideration of C$24.40 per unit, made up of C$19.24 in cash and 0.3186 of a Choice Properties unit.
Choice Properties REIT is a Canadian real estate investment trust that specializes in necessity-based, urban retail properties. The REIT is controlled by George Weston Limited, the holding company of the Weston family, one of Canada's most prominent grocery and retail dynasties. KingSett is a private real estate firm.
Once the deal closes, Choice Properties will take roughly C$5 billion worth of First Capital's shopping centers and retail properties across Canada, and KingSett will take the remaining C$4.4 billion of assets and will become the new owner of all First Capital units, effectively taking the company private.
The transaction price represents a premium of 17% to First Capital's 20-day volume-weighted average price through April 15, 2026, and a premium of 8% to First Capital's net asset value of C$22.57 per unit.
First Capital's stock price has been higher so far in 2026, rising about 16% to close on Wednesday at C$21.84. The stock is up 35% over the last 52 weeks.
Choice Properties said that it expects the acquisition portfolio to generate full-year net operating income of C$235 million in 2027, with an annual growth rate of about 3.5% in the near-term.
Choice Properties also said it plans to finance the acquisition through a combination of debt and equity.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 16, 2026 08:11 ET (12:11 GMT)
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