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Canada  + Cross Border News  + Retail  | 
First Capital REIT has announced $116 million of new dispositions.

First Capital Completes $116M in New Dispositions

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.

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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