Cadillac Fairview has completed the sale of 50 per cent ownership interests in two major Canadian shopping centres to KingSett Capital, expanding a partnership as the Ontario Teachers’ Pension Plan-owned real estate company continues repositioning its property portfolio.
The transactions involve CF Markville in Markham, Ontario, and CF Fairview Pointe Claire in Pointe-Claire, Quebec. According to an October 30 announcement, KingSett acquired 50 per cent non-managing co-ownership interests in both properties through its Real Estate Growth LP No. 9 fund. Cadillac Fairview retained the remaining interests and responsibility for managing and operating the shopping centres.
Financial terms were not disclosed. The deals follow KingSett’s acquisition of a 50 per cent interest in CF Masonville Place in London, Ontario, in October 2025, bringing the partnership to three established regional shopping centres.
The transactions come as Cadillac Fairview continues selling selected retail and office properties to diversify its holdings. S&P Global Ratings has identified financial pressures associated with its smaller property portfolio and the time required to reinvest proceeds from dispositions.
Cadillac Fairview Repositions Its Property Portfolio
Cadillac Fairview, wholly owned by the Ontario Teachers’ Pension Plan, has been selling selected properties as part of a broader effort to diversify its real estate investments.
Among the most significant transactions was the sale of CF Lime Ridge in Hamilton to Primaris REIT for $416 million in June 2025. The transaction involved the entire ownership interest in the approximately 793,000-square-foot shopping centre and closed on June 17. Cadillac Fairview has also disposed of CF Champlain in Greater Moncton, CF Fairview Park in Kitchener and CF Promenades St-Bruno in Quebec.
In June 2026, Cadillac Fairview placed CF Shops at Don Mills in Toronto on the market. The 580,153-square-foot open-air centre at Don Mills Road and Lawrence Avenue East was marketed by TD Cornerstone Commercial Realty and CBRE, with its retail income and redevelopment potential among the selling points. A completed sale has not been confirmed.
Retail advisor Antony Karabus previously told Retail Insider that Shops at Don Mills did not necessarily align with Cadillac Fairview’s focus on its highest-performing regional malls.
“CF’s shopping centre strategy clearly is to build and optimize the most productive modern malls that cater to the biggest-spending retail customers,” Karabus said.
The KingSett transactions involve a different ownership structure. Cadillac Fairview retains a 50 per cent managing interest at each property while bringing in another institutional investor.
“We are very proud to expand our relationship with KingSett Capital, a highly respected and like-minded institutional investor that shares our long-term vision for best in class shopping centres,” said Sal Iacono, president and CEO of Cadillac Fairview, in the October 30 announcement.
Diversification Beyond Retail and Office Properties
In a February 2026 interview with RENX, Iacono discussed Cadillac Fairview’s historical concentration in retail and office properties and its intention to increase investment in industrial and multifamily residential real estate.
He outlined longer-term aspirations for industrial properties to represent approximately 15 to 25 per cent of the portfolio and multifamily residential assets to account for roughly 20 to 25 per cent. These are strategic objectives, not current portfolio allocations.
Cadillac Fairview has also sold office properties, including Tour Deloitte in Montreal and Yonge Corporate Centre in Toronto. The dispositions provide capital for investment in other sectors, although selling income-producing properties can reduce earnings until replacement investments begin generating returns.
The transition has financial implications for a company that continues to own and manage some of Canada’s most prominent shopping centres.
S&P Identifies Financial Pressures
A June 1, 2026 assessment by S&P Global Ratings provides further context for Cadillac Fairview’s portfolio strategy.
S&P revised its outlook on Ontario Teachers’ Cadillac Fairview Properties Trust to negative from stable while affirming its A+ issuer credit rating. The agency cited a smaller property portfolio, lower earnings before interest, taxes, depreciation and amortization (EBITDA), and delays between property sales and reinvestment.
According to S&P, the trust’s gross leasable area declined approximately 18 per cent by the end of 2025 compared with a year earlier. Dispositions of higher-performing retail assets also increased the relative weighting of office properties, where operating conditions remained challenging.
Office occupancy stood at 82.4 per cent at the end of 2025, down from 84.6 per cent a year earlier. The weaker office performance contributed to the agency’s concerns about the portfolio’s operating metrics.
S&P-adjusted leverage reached approximately 5.9 times EBITDA for the 12 months ended March 31, 2026, compared with 5.7 times in the preceding period. The agency expected leverage to remain in the low-six-times range during 2026 and 2027 as the company worked to rebuild earnings through new investments.
The assessment also identified approximately $372.9 million in remaining expenditures associated with specific redevelopment properties as of March 31, 2026.
Hudson’s Bay Closures Add Redevelopment Requirements
Cadillac Fairview’s portfolio changes are occurring as shopping centre owners address the aftermath of Hudson’s Bay’s collapse.
The department-store chain’s closure in 2025 left substantial premises available for redevelopment across Canada. Replacing these tenants can require significant investment, particularly when older department-store spaces must be subdivided or adapted for new retail uses.
At CF Markville, Hudson’s Bay previously occupied approximately 140,094 square feet, representing about 14 per cent of the shopping centre’s gross leasable area, according to Cadillac Fairview’s August 2025 court materials.
Cadillac Fairview has since secured a major replacement tenant for part of that space. In September, T&T Supermarket announced a 68,000-square-foot store at CF Markville, occupying the lower level of the former Hudson’s Bay premises.
The planned 2028 opening will involve relocating and expanding T&T’s existing approximately 50,000-square-foot Unionville store. The new location will introduce a larger grocery operation to CF Markville while bringing a significant portion of the former department-store space back into productive use.
Redevelopments of this scale can create opportunities for higher rental income and a broader tenant mix. Their economics depend on construction costs, tenant improvements, leasing incentives and the time required to complete the work.
At CF Masonville Place, another Cadillac Fairview–KingSett property, Hudson’s Bay previously occupied approximately 84,928 square feet, or 13 per cent of the shopping centre’s gross leasable area, according to the same court materials. That space represents another substantial leasing and redevelopment consideration.
KingSett Expands Canadian Retail Investments
While Cadillac Fairview has been reducing its ownership exposure to selected properties, KingSett Capital has been expanding its Canadian retail real estate investments.
The Toronto-based private equity real estate firm reports more than $19 billion in assets under management across multiple property sectors. Its interests in CF Masonville Place, CF Markville and CF Fairview Pointe Claire provide exposure to established regional shopping centres in Ontario and Quebec.
“We continue to see compelling opportunities in high-quality Canadian retail, particularly in well-located centres that serve growing communities,” said Rob Kumer, CEO of KingSett Capital, in the October 30 announcement.
KingSett is also pursuing a much larger transaction that would substantially expand its retail holdings.
In April 2026, KingSett and Choice Properties REIT announced an agreement to acquire First Capital REIT in a transaction valued at approximately $9.4 billion, including debt.
Under the agreement, KingSett would acquire approximately $4.4 billion in First Capital assets and other interests, while Choice Properties would acquire approximately $5 billion in retail properties, primarily grocery-anchored shopping centres.
KingSett’s proposed allocation includes neighbourhood retail properties, high-street retail, development interests and other financial assets, extending its exposure beyond enclosed regional malls.
The First Capital acquisition is being pursued through KingSett Real Estate Growth LP No. 8, while the latest Cadillac Fairview interests were acquired through Growth LP No. 9.
First Capital unitholders approved the arrangement on June 23, 2026, and the Ontario Superior Court of Justice granted a final approval order on June 25.
In its third-quarter results released November 2, First Capital confirmed that the transaction was still expected to close in the fourth quarter of 2026, assuming required approvals are obtained and remaining conditions are satisfied.
The proposed First Capital assets therefore remain separate from KingSett’s completed shopping centre acquisitions.
Implications for Canadian Shopping Centre Ownership
The growing Cadillac Fairview–KingSett partnership illustrates how institutional owners can change their investment exposure while maintaining continuity in shopping centre management.
Cadillac Fairview can release capital while retaining responsibility for leasing, operations and retailer relationships. KingSett gains an ownership interest in established properties, along with exposure to their income and potential appreciation. The arrangements may also allow the companies to share future capital improvement and redevelopment costs, depending on their agreements.
For retailers, continuity in management can be important. Leasing negotiations, tenant-mix planning, marketing and redevelopment decisions can continue through an established operating platform even as ownership changes.
The transactions reflect different investment priorities among major Canadian real estate organizations. Cadillac Fairview is diversifying beyond traditional retail and office properties, while KingSett is expanding its exposure to retail through direct partnerships and a proposed major corporate acquisition.
Cadillac Fairview reports approximately $26 billion in assets under management and continues to own and operate prominent Canadian shopping centres. Its recent transactions represent a reallocation of ownership interests within a substantial continuing retail portfolio.
Neither company has disclosed the financial terms of the latest shopping centre transactions or confirmed plans for additional co-ownership arrangements.
The next developments include the expected closing of KingSett’s First Capital acquisition, the disposition status of CF Shops at Don Mills and the redevelopment of former Hudson’s Bay premises at CF Markville and CF Masonville Place.
