A Toronto-based real estate firm is raising capital to finance its new stake in a portfolio of shopping centres across Ontario and Quebec, half of which are in the National Capital Region.
Firm Capital Property Trust announced Wednesday it will raise $26.2 million through a share offering and an additional $15 million in a related private placement. If overallotment options are exercised on the deal, the Toronto firm’s gross proceeds from the financing will increase to more than $45 million.
Firm Capital is raising the extra cash to finance the acquisition of a 50-per-cent interest stake in a portfolio of six shopping centre properties owned by First Capital Realty. Firm Capital will pay $133 million for the stake in more than one million square feet of property primarily anchored by grocery stores.
OBJ360 (Sponsored)
Setting a new standard in 50+ community living
The Clemow, located in the heart of Ottawa’s prestigious Glebe District, stands as a beacon of innovation and elegance. Developed by KTS Properties, a family-run business with a rich history
How to mitigate AI legal risks by asking the right questions
Does AI hallucinate? According to local employment law expert Zoriana Priadka of Emond Harnden, it does. Find out how to mitigate your risk as an employer.
The deal includes stakes in Carrefour du Plateau in Gatineau as well as the Merivale Mall and Gloucester City Centre properties in Ottawa. Gloucester, the largest property in the deal at 370,000 square feet, is anchored by a 124,000-square-foot Loblaws. The three National Capital Region shopping centres represent more than 80 per cent of the deal’s total square footage, with the remaining three smaller properties in Repentigny, Que.
Upon closing, Firm Capital will enter into a co-ownership agreement with First Capital, the latter of which will maintain property management services at the properties.
The deal is expected to close on in early May.
