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

First Capital Seeks to Raise $300M

First Capital REIT is seeking to raise $300 million to pay down debt.

The REIT announced that it has agreed to issue C$300 million of Series B senior unsecured debentures.

“The debentures are being offered on an agency basis by a syndicate of agents co‐led by Desjardins Capital Markets, RBC Capital Markets and TD Securities,” Toronto-based First Capital said in a news release.

First Capital will issue the debentures at par, They will bear interest at a rate of 5.572% per annum and mature on March 1, 2031.

“Inclusive of the benefit of bond forward hedges, the REIT’s all-in interest rate will be 5.481% per annum,” said First Capital. 

The raise attempt coincides with First Capital’s $1-billion portolio optimization plan, which is designed to monetize low-yielding assets, increase short-to-medium-term cash flow from operations and reduce debt.

At last report, First Capital had completed, or agreed to, $633 million of dispositions under the plan, which aims to reach the $1-billion goal by year-end 2024.

First Capital owns, operates and develops grocery-anchored, open-air retail centres across Canada.


Inside The Story

First Capital REIT

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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