KingSett Capital, Choice Properties to acquire First Capital in $6.85 billion deal (updated)

Choice Properties Real Estate Investment Trust

16/04/2026 13:06

Adds Choice Properties CEO comment in paragraph 5 and further details throughout

By Aatreyee Dasgupta

April 16 (Reuters) - Real estate investment trust Choice Properties CHP_u.TO and private-equity firm KingSett Capital will acquire First Capital REIT FCR_u.TO in a cash-and-stock deal worth about C$9.4 billion ($6.85 billion) including debt, the companies said on Thursday.

First Capital's assets will be split between the two, with Choice acquiring its grocery‑anchored retail properties worth about C$5 billion, while KingSett will take over the rest as a private investment worth about C$4.4 billion.

First's shares jumped more than 8% in morning trade, while Choice shares rose 1%.

Retail properties are popular with investors for their resilience and steady income streams, and First Capital owns and operates open-air grocery-anchored shopping centers in neighborhoods across Canada.

"The portfolio we are acquiring has greater exposure to major markets, higher population density within a five per kilometer radius, greater exposure to necessity-based retail tenants and significantly less development in First Capital's overall portfolio," Choice CEO Rael Lee Diamond said during an investor call on Thursday.

As per Reuters' calculations, each First Capital shareholder will receive C$19.24 per share in cash and about C$5.16 per share in Choice Properties stock, valuing First Capital at C$5.18 billion.

This represents an 11.7% premium to First Capital's closing price on April 15.

The transaction is expected to close in the second half of 2026.

($1 = 1.3724 Canadian dollars)

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Jonathan Ananda)

((Aatreyee.Dasgupta@thomsonreuters.com;))