First Capital’s $9B portfolio to be divided between Choice Properties and KingSett

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Meanwhile, KingSett, a private equity real estate firm whose properties include Scotia Plaza in Toronto, will take on about $4.4 billion of the trust’s assets including its high-street retail properties.

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“This is an excellent transaction for our investors,” First Capital CEO Adam Paul said in a news release.

Rob Kumer, head of KingSett, said the deal comes as there are signs of renewed optimism in Canadian real estate.

Choice Properties was launched in 2013 when Loblaw Cos. Ltd. spun out its property holdings in an initial public offering. The trust now has more than 68 million square feet of real estate with an estimated value of about $17.8 billion.

Choice Properties CEO Rael Diamond said the deal will increase its presence in urban markets and further diversify its tenant base.

“Opportunities to acquire assets of this quality and scale are extremely rare, especially when they are so closely aligned with our strategy,” he told a conference call with investors and financial analysts.

He said the portfolio includes 50 grocery store tenants that are competitors to Loblaw Cos. Ltd., as well as 65 Loblaw and Shoppers Drug Mart locations.

Asked if the Competition Bureau is likely to have any concerns about the deal, Choice Properties general counsel Simone Cole said she believes they’ve covered their bases.

“Obviously there’ll be a review, but we feel really confident in the work we’ve done for that.”

Under the plan, First Capital unitholders will receive $19.24 in cash and 0.3186 units of Choice Properties per First Capital unit.

The offer is valued at $24.40 per First Capital unit, based on the closing unit price of Choice Properties on Wednesday.

First Capital units were up $1.81 or eight per cent at $23.65 in Thursday afternoon trading on the Toronto Stock Exchange.

This report by The Canadian Press was first published April 16, 2026.

Companies in this story: (TSX:CHP.UN, TSX:FCR.UN)

Ian Bickis, The Canadian Press