Canadian Tire Corporation to sell Brampton industrial property for $258 million
Canadian Tire Corporation to sell Brampton industrial property for $258 million |
| [15-November-2024] |
TORONTO, Nov. 15, 2024 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) (CTC or the Company) today announced an agreement to sell a 90-acre industrial property in the Greater Toronto Area for total proceeds of $258 million. This follows a North American-wide competitive bid process initiated in the first quarter of 2024. The property, located at the corner of Bramalea and Steeles in Brampton, Ontario, includes 1.5-million square feet of industrial real estate which is no longer needed for CTC's distribution centre requirements as a result of strategic supply chain investments and consolidation in recent years. "Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain," said Greg Hicks, President and CEO, Canadian Tire Corporation. "In that same spirit, we have been investing and evolving, introducing modern and sophisticated facilities in the region, which are key to our supply chain of the future." "Our need for the site has decreased significantly in recent years. This transaction offers a clear example of our ability to surface shareholder value from surplus real estate assets." CTC's real estate portfolio remains a core asset and a source of potential value through the sale, entitlement or redevelopment of redundant properties. This transaction follows the sales of retail properties in Chilliwack, B.C. and the Greater Toronto Area, as disclosed with the Company's Q2 2024 and Q3 2024 results. The transaction will result in a pre-tax gain of approximately $240 million on closing and will be treated as a normalizing item. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Proceeds will be used to reduce borrowings associated with the Company's October 2023 repurchase and consolidation of the Canadian Tire Financial Services business. FORWARD-LOOKING STATEMENTS This press release contains forward-looking information within the meaning of applicable securities laws, which reflects Management's current expectations and plans regarding the sale of a 90-acre industrial property, located in the Greater Toronto Area (the Transaction) and future events. All statements other than statements of historical facts contained in this press release may constitute forward-looking information, including, but not limited to, statements concerning: the closing of the Transaction, including the closing date; the applicable tax and accounting treatment of the Transaction; and the use of proceeds from the Transaction. CTC has provided these forward-looking statements for the purpose of presenting information about management's current expectations and plans relating to the Transaction and readers are cautioned that these statements may not be appropriate for other purposes. Forward-looking statements are based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management, made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made. Forward-looking information is necessarily subject to a number of business, economic, competitive and other risk factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information. For information on the material risk factors and uncertainties and the material factors and assumptions applied in preparing the forward-looking information that could cause CTC's actual results to differ materially from predictions, forecasts, projections, expectations or conclusions, refer to section 13.0 (Forward-Looking Information and Other Investor Communications) of the Third Quarter 2024 Management's Discussion and Analysis as well as CTC's other public filings, available at https://www.sedarplus.com and at https://investors.canadiantire.ca. CTC does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws. ABOUT CANADIAN TIRE CORPORATION Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) (or "CTC"), is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark's, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands. The Company's close to 1,700 retail and gasoline outlets are supported and strengthened by CTC's Financial Services division and the tens of thousands of people employed across Canada and around the world by CTC and its local dealers, franchisees and petroleum retailers. In addition, CTC owns and operates Helly Hansen, a leading technical outdoor brand based in Oslo, Norway. For more information, visit Corp.CanadianTire.ca FOR MORE INFORMATION SOURCE Canadian Tire Corporation, Limited | ||
Company Codes: Toronto:CTC, Toronto:CTC.A |
