First Capital REIT has announced $116 million of new dispositions in Ontario and B.C.

The REIT said the sales, involving mainly partial interests in four properties, are subject to firm agreements. Toronto-based First Capital mainly owns, operates and develops grocery-anchored shopping centres in major Canadian markets.

The divestitures are part of a $1-billion portfolio optimization plan designed to monetize low-yielding assets, increase short-to-medium-term cash flow from operations and reduce debt.

First Capital sold its 50% interest in the Royal Orchard development site in Thornhill, Ont., Circa Residences (68 residential rental suites) located in Richmond, B.C.; a 41.7% interest in 1071 King St. W. in Toronto, reducing the REIT’s stake to 25%; and an entire small medical-office building at 71 King St. W. in Mississauga, Ont.

The total sales price reflects a 68% premium to their carrying value, said First Capital.

The all-cash deals have closing dates between January and March 2024.

Meanwhile, First Capital said it completed $58 million in previously announced dispositions during the fourth quarter of 2023. The REIT sold a 25% interest in its Yonge & Roselawn development site in Toronto and a single-tenant property at 6455 West Boulevard in Vancouver, which comprises a Save-on-Foods grocery store.

First Capital has completed, or agreed to, $633 million of dispositions under its portfolio optimization plan, which aims to reach the $1-billion goal by year-end 2024.