The Financial Post reports in its Tuesday edition that investing in publicly traded real estate is becoming tougher as Canada's First Capital REIT is going private in a $9.4-billion deal. The Post's Gary Marr writes that First Capital is being sold to Kingsett Capital and Choice Properties REIT. This move reflects a trend of private entities acquiring undervalued assets in a sector hit hard since the pandemic. Choice Properties is involved in the transaction. The $24.40-per-unit offer is a 17-per-cent premium to First Capital's 20-day volume-weighted average price and a premium of 8 per cent to the REIT's net asset value of $22.57 per unit. The REIT traded at almost $22 before the pandemic. Post-pandemic, private real estate has traded at higher prices than public assets, sparking debate over this disparity. If you were an investor, you might question how much to invest in tepid real estate, given a five-year return of just over 2 per cent from the iShares S&P/TSX Capped REIT Index ETF. Scotiabank analyst Mario Saric notes the departure of another quality REIT but highlighted the First Capital deal as a reason to remain optimistic about the retail trust sector. He says the loss of First Capital is significant.