First Capital REIT to Sell Residential Interest in King High Line

First Capital REIT, a property investment giant known for its grocery-anchor-based, open-air retail portfolio, announced this morning that they are selling their remaining 50% non-managing interest in the residential portion of the King High Line.

In a release, FCR confirmed it has entered into a firm agreement to offload the component for gross proceeds of $149M, while retaining 100% interest in its retail and commercial parking elements. The buyer has not yet been disclosed.

Situated at a prime location at 1100 King Street West and neighbouring the Liberty Village community, the King High Line is a mixed-use property featuring 160,000 sq. ft of retail, 650 ft of which run along the King St. W frontage. Retail tenants include Longos, Canadian Tire, Shoppers Drug Mart, Winners, and a Petsmart, among others. It is the site of three residential towers, with a total of 506 units, currently 96% occupied. The site is also accessible to transit, situated directly on the TTC’s King St. streetcar line.

READ: Amid Economic Uncertainty, Canada’s Retail, Industrial Markets to Remain Resilient

Adam Paul, President and CEO of First Capital said, "This transaction represents the immediate execution of our recently announced Enhanced Capital Allocation and Portfolio Optimization Plan and is indicative of the type of value surfacing transactions that we have identified. Consistent with our Plan, we have realized FCR's short to medium term objectives for this asset and will reallocate the proceeds to more productive uses, including our NCIB. The sale of our interest in King High Line residential at a premium to IFRS value is accretive to both NAV and FFO per unit while at the same time positively impacts our key debt metrics."

According to FCR’s release, the sale price equates to a capitalization rate of less than 3% on in-place net operating income. The site was recently financed with a 10-year, interest-only $160M first mortgage ($80M of which is FCR’s share), with a 4.8% fixed rate. The mortgage is to be assumed by the purchaser upon the transactions scheduled Q4 closing.

Added Paul, "We have an exceptional portfolio and remain confident in our ability to unlock value for our unitholders through the ongoing monetization of low-yielding and non-core properties while progressing our necessity-based retail properties and maintaining a significant density pipeline for future development."

Retail

First Capital REIT to Sell Residential Interest in King High Line in $149M Deal

First Capital REIT has announced it is selling off its residential interest in the King High Line, in a $149M deal to an undisclosed buyer.

Trending

You may also like

The Heather Lands project is being undertaken by MST Development, Aquilini Development, and the Canada Lands Company.

It's time to say "Hello" to Michel Naud of Engel & Völkers Tremblant, who focusses on Mont-Tremblant, The Laurentians, and Montréal.

​The Woodbine & Steeles Corporate Centre sits at 7030-7100 Woodbine Avenue and 55, 85 Idema Road in Markham, Ontario.

With four floors of beautifully renovated spaces, ample room for family and friends, and an unbeatable location, this is a home you don't want to miss out on.

The national average was pulled down by steep annual rent declines observed in Toronto (-9%) and Vancouver (-8%) as renters flocked to more affordable markets.

Applicants must meet two conditions in order to become eligible to receive money from the Canada Housing Infrastructure Fund, which launched on November 7.

If you’re one of the many who, when unsure whether an item qualifies for recycling, opt to toss it into the Blue Bin because you’d rather avoid putting it in the garbage, you may have caused a process disruption without even realizing it.

Plans for a new mixed-use development, dubbed "Hickory Tree Towers," have been proposed for Toronto's Humber Heights-Westmount neighbourhood, where it would rise 38 storeys and deliver 421 new dwelling units.

The Province gave the City of Vancouver a five-year target of 28,900 and a target of 5,202 for the first year, which Vancouver has fallen short of.

A new report from PwC Canada and ULI identifies opportunities for Canadian real estate investors in 2025.

The 40-storey mixed-use development would deliver 494 new purpose-built rentals on City-owned land, 30% of which would be affordable units.

Housing prices, whether it be sale prices or rents, could increase anywhere from 1% to 3% with the new Metro Vancouver DCC rates — if they get built at all.

According to TRREB, October homes sales in the GTA increased on both a monthly and yearly basis, while new listings ticked up at a lower rate than last year.

​The subject site of the proposal is 10611 150 Street in Surrey, currently occupied by the Maple Place apartments, near Guildford Town Centre.

Assistant Chief Economist at RBC Robert Hogue is calling the revised immigration targets "one of the more consequential policy reversals in recent memory."

Over six years later, the developer behind a pre-pandemic project for Dundas Street West has submitted revised plans that intend to do away with office replacements.

2024 © STOREYS Publishing Inc. | All Rights Reserved

The Woodbine & Steeles Corporate Centre sits at 7030-7100 Woodbine Avenue and 55, 85 Idema Road in Markham, Ontario.

The subject site of the proposal is 10611 150 Street in Surrey, currently occupied by the Maple Place apartments, near Guildford Town Centre.