KingSett Capital and Choice Properties have agreed to acquire First Capital REIT in a $6.85bn transaction.

The cash-and-stock deal will see First Capital’s portfolio split between the two buyers. Choice Properties will acquire grocery-anchored retail assets valued at approximately C$5bn, while KingSett will take ownership of the remaining portfolio in a private investment valued at around C$4.4bn.

First Capital’s portfolio includes open-air shopping centres anchored by grocery tenants across major Canadian markets.

Under the terms of the deal, shareholders will receive C$19.24 per share in cash and C$5.16 in Choice Properties stock, representing an 11.7% premium to the company’s prior closing price, underscoring competitive dynamics in the sector.

“This is an exciting and transformative transaction that will solidify Choice Properties as Canada’s leading REIT,” Rael Lee Diamond, CEO of Choice Properties, said in a statement. “Choice Properties is acquiring best-in-class, necessity-based neighbourhood shopping centres that will significantly strengthen our portfolio.”

The transaction is expected to close in the second half of 2026, subject to customary approvals.

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