KingSett Capital and Choice Properties have sealed a cash‑and‑stock purchase of First Capital REIT valued at $6.85 bn. The split gives Choice roughly C$5 bn of grocery‑anchored retail centres, while KingSett receives the balance, a private tranche estimated at C$4.4 bn. Shareholders will be paid C$19.24 in cash plus C$5.16 in Choice stock, an 11.7% premium. The deal also marks a rare large‑scale joint acquisition in the sector.

The assets under First Capital are mainly open‑air shopping malls anchored by grocery tenants across Canada’s largest markets. By adding those neighbourhood centres, Choice aims to cement its position as the country’s leading REIT, a goal echoed by CEO Rael Lee Diamond. KingSett’s private acquisition broadens its exposure to diversified retail properties beyond the grocery segment and strengthens its cash flow profile.

Closing is slated for the second half of 2026, pending standard regulatory approvals. The premium paid reflects intense competition for necessity‑based retail space, and the deal reshapes ownership of a significant portion of Canada’s open‑air shopping portfolio. Investors now face a more concentrated market, with Choice Properties and KingSett Capital controlling roughly C$9.4 bn of assets formerly held by First Capital.