First Capital Realty announces private placement of $50 million principal amount of convertible unsecured subordinated debentures



    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/

    TORONTO, June 27 /CNW/ - First Capital Realty Inc. ("First Capital
Realty") (TSX:FCR) Canada's leading owner, developer and operator of
supermarket-anchored neighbourhood and community shopping centres, located
predominantly in growing metropolitan areas, announced today that it has
entered into agreements for the sale, on a private placement basis, of an
aggregate of $50 million aggregate principal amount of 5.50% convertible
unsecured subordinated debentures maturing on September 30, 2017 (the
"Debentures") at a price of $107 per $100 principal amount of Debentures, for
net proceeds of $53.4 million, plus accrued interest to the date of closing.
RBC Capital Markets led a syndicate of investment dealers that acted as First
Capital Realty's agents in connection with the private placement that was
previously announced June 20, 2007.
    The agreements include an agreement with Gazit Canada Inc., the Company's
largest shareholder, in respect of the sale to it of $49 million aggregate
principal amount of Debentures. Closing of the private placement is scheduled
to occur June 29, 2007.
    The Debentures will have the same terms and conditions, and be considered
to be a part of, the "Class Cdn Debentures" class of "Initial Debentures" as
defined in the indenture dated December 19, 2005 between First Capital Realty
and Computershare Trust Company of Canada, as supplemented (the "Indenture").
The Class Cdn Debentures are listed on the TSX under the symbol FCR.DB.A.
    Subject to any required regulatory approval, it is First Capital Realty's
current intention to satisfy the interest payable and the principal on
redemption or maturity of the Debentures in accordance with the terms of the
Debentures, by issuing to holders of Debentures that number of common shares
in the capital of the Company obtained by dividing the amount payable by 97%
of the volume-weighted average trading price of the common shares on the TSX
for the 20 consecutive trading days ending five trading days prior to the
interest payment date or date of redemption or maturity.
    The net proceeds from this offering will be used to pay down amounts
owing on certain of First Capital Realty's revolving credit facilities, to
fund future acquisitions and development activities and for general corporate
purposes.

    ABOUT FIRST CAPITAL REALTY

    First Capital Realty is Canada's leading owner, developer and operator of
supermarket-anchored neighbourhood and community shopping centres, located
predominantly in growing metropolitan areas. The Company currently owns
interests in 163 properties, including seven under development, with
approximately 19.1 million square feet of gross leasable area, and also has
nine land sites in the planning stage for future retail development. In
addition, the Company owns 14.0 million shares of Equity One (approximately
19%), one of the largest shopping centre REITs in the southern U.S., that
trades on the New York Stock Exchange under the ticker symbol EQY. Including
its investments in Equity One, the Company has interests in 339 properties
totalling approximately 37.0 million square feet of gross leasable area.





For further information:

For further information: Dori J. Segal, President & C.E.O., or Karen H.
Weaver, C.F.O., First Capital Realty Inc., King Liberty Village, 85 Hanna
Avenue, Suite 400, Toronto, Ontario, Canada, M6K 3S3, Tel: (416) 504-4114,
Fax: (416) 941-1655, www.firstcapitalrealty.ca


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