Article
First Capital REIT Acquisition: A Rare Opportunity in the Canadian Retail Market
May 4, 2026 3 Minute Read
CBRE’s Hillel Abergel says the $9.4 billion acquisition of First Capital REIT by KingSett Capital and Choice Properties REIT represents an extremely rare opportunity in the Canadian marketplace, “where so much retail is so tightly held by so few.”
Choice Properties will acquire ~$5.0 billion of retail assets from First Capital – mostly necessity-based shopping centres located in urban neighbourhoods in Greater Toronto, Greater Montreal, Greater Vancouver and Calgary.
KingSett will acquire ~$4.4 billion of First Capital assets, comprising a needs-based retail portfolio, high-street retail properties, development and other financial assets.
‘Instant Diversification’
“The type of retail in combination with the urban nature of its markets and its quality – it was exceptionally well managed – provides instant diversification,” Abergel, a Vice Chairman with CBRE’s National Investment Team, told Green Street News.
He added that there has been interest around First Capital “for quite some time. It was a coveted portfolio for a lot of reasons.”
Grocery-anchored retail is among the most sought-after asset types, Abergel said, largely due to its consistent performance throughout market cycles. “And this transaction is a reflection of that.”
Renewed Optimism
KingSett Capital CEO Rob Kumer said in a release that the deal comes at a time “when we are seeing renewed optimism and positive momentum in Canadian real estate.”
Choice Properties CEO Rael Diamond noted in the release that the “transformative transaction” will solidify Choice Properties as Canada's leading REIT.
“We believe this is a unique and compelling opportunity that will increase our presence in urban markets and further diversify our tenant base.”
Abergel, who was not involved in First Capital’s sale, said there is significant embedded upside potential in the deal because First Capital’s portfolio is so well-located, “and because their sites are so strong in urban cores of primary markets.”
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