Cadillac Fairview Sells 50% Stakes in Two Malls to KingSett Capital, Expanding Joint Venture to Three Centres
TORONTO — Cadillac Fairview (CF) has expanded its joint venture with KingSett Capital to include three Canadian shopping centres, completing the sale of a 50% non-managing co-ownership interest in two retail properties to KingSett's Real Estate Growth LP No. 9, the firms announced Oct. 30, 2026.
The two newly co-owned assets are CF Fairview Pointe Claire in Pointe-Claire, Quebec, and CF Markville in Markham, Ontario. They are the second and third assets co-owned by the two firms and join KingSett Capital's existing co-ownership interest in CF Masonville Place in London, Ontario. Cadillac Fairview retains a 50% managing interest and will continue to manage and operate all three properties.
Deal structure: KingSett Capital takes non-managing stakes
Under the arrangement, KingSett Capital holds a 50% non-managing interest in CF Fairview Pointe Claire and CF Markville through Real Estate Growth LP No. 9. Cadillac Fairview keeps the managing 50% interest and day-to-day operating responsibility. The structure allows Cadillac Fairview to sell part of its equity in the centres while keeping operating control, and gives KingSett Capital exposure to the properties without taking over management.
Executives comment on the partnership
Sal Iacono, president and chief executive officer of Cadillac Fairview, described KingSett Capital as "a highly respected and like-minded institutional investor that shares our long-term vision for best in class shopping centres." He added: "This milestone is a powerful testament to the strength and operational excellence of our management platform, as well as the enduring value and national reach of our portfolio."
Marco Ding, executive vice president of investments at Cadillac Fairview, said: "Growing our co-ownership partnership with KingSett across these three prime Canadian assets underscores strong market confidence in premier retail destinations. We look forward to combining our shared expertise to drive sustainable, long-term performance and unlock exceptional value across the joint portfolio."
Rob Kumer, chief executive officer of KingSett Capital, said: "We continue to see compelling opportunities in high-quality Canadian retail, particularly in well-located centres that serve growing communities. Expanding our partnership through CF Fairview Pointe Claire and CF Markville reflects the long-term opportunity we see in the sector and our confidence in Cadillac Fairview as a best-in-class retail operator. We look forward to building on this relationship and creating value together in the years ahead."
Market context for Canadian retail investment
The transaction comes as Canadian retail investment benefits from constrained new supply and strong demand for high-quality assets. Stabilized retail properties were generally trading in the high-5% to low-6% cap-rate range in the third quarter of 2026, while investor demand continued to exceed available product. The national average cap rate across all Canadian property types fell to 6.56% in the third quarter of 2026, down two basis points from the prior quarter.
Retail development remains limited. Canadian retail construction starts fell by more than 40% year over year to a decade low, leaving a development pipeline of approximately 5 million square feet. Leasing fundamentals were relatively strong in the first half of 2026, with vacancy tight in key formats such as grocery-anchored centres and demand increasingly coming from medical, fitness, personal-service and quick-service-restaurant tenants.
Risks for retail owners include household budget pressure, higher occupancy costs, weaker traffic in some traditional malls, and elevated construction and financing costs.
About the firms
Cadillac Fairview is an owner, operator, investor and developer of office, retail, multi-family residential, industrial and mixed-use properties in Canada. It is wholly owned by the Ontario Teachers' Pension Plan and has assets under management of $26 billion.
KingSett Capital is a private equity real estate investment firm with more than $19 billion of assets under management. Founded in 2002, it has more than 170 employees in Toronto, Montreal and Vancouver.
Outlook
The expanded partnership brings together Cadillac Fairview's operating platform and KingSett Capital's long-term capital across malls in Ontario and Quebec. With new mall development limited and investor interest concentrated in high-quality properties, co-ownership structures of this kind allow sellers to recycle capital while retaining management of established centres.
Sources
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