First Capital sells 50% stake in trio of Gatineau retail properties

Place Cit​é des Jeunes
Place Cit​é des Jeunes is one of First Capital's retail holdings in Gatineau. Photo courtesy First Capital

A Toronto-based real estate developer with significant holdings in the National Capital Region is selling a stake in three Gatineau properties to one of its institutional partners.

First Capital REIT said this week it’s agreed to sell a 50 per cent non-managing interest in Gatineau retail centres Carrefour du Versant, Place Nelligan and Place Cit​é des Jeunes for a combined price of nearly $60 million. The unnamed investor had previously purchased a stake in other First Capital properties in Ottawa last year.

The transactions are expected to close before the end of 2020.

“We are delighted to expand our relationship with a great existing partner through this most recent transaction and look forward to further partnering in the future on additional properties from both First Capital and third parties,” First Capital CEO Adam Paul said in a statement.

Earlier this year, the firm filed plans to redevelop the Merivale Mall, one of its major holdings in Ottawa. 

First Capital plans to construct at least two buildings beside the 220,000-square-foot shopping centre at 1642 Merivale Rd. The firm says it intends to pursue a multi-phased approach that would include the construction of a 12-storey mixed-use building and a seven-storey residential building.

That followed First Capital’s announcement in 2019 that it plans to build a 30-storey mixed-use highrise next to the Gloucester Centre, one of its other local retail properties. 

In its site plan application, the company called the project “the first stage of a larger redevelopment of Gloucester Centre,” which is located steps from the Blair LRT station.