has announced the sale of a 90-acre industrial property in Brampton, Ontario, for $258 million following a competitive North American bid process initiated earlier this year. The site, located at the intersection of Bramalea Road and Steeles Avenue, includes 1.5 million square feet of industrial space that has become redundant due to the company’s strategic supply chain investments and consolidation.
“Fifty years ago, this site was a groundbreaking development and a cornerstone of our supply chain,” said Greg Hicks, President and CEO of Canadian Tire Corporation. “In that same spirit, we have modernized and evolved our infrastructure, investing in state-of-the-art facilities in the region that are central to our future supply chain strategy.”
The sale marks another step in CTC’s ongoing efforts to unlock shareholder value through its real estate portfolio.
“Our need for this site has significantly decreased in recent years. This transaction exemplifies how we can surface value from surplus real estate assets while continuing to drive efficiencies in our operations,” Hicks added.
The deal is expected to result in a pre-tax gain of approximately $240 million, which will be reflected as a normalizing item in the company’s financials. Proceeds from the transaction will be used to reduce borrowings related to the company’s October 2023 consolidation of the Canadian Tire Financial Services business, said the company in a news release.
It did not disclose who purchased the property.
Canadian Tire strategy
The Brampton sale continues Canadian Tire’s strategy of monetizing non-core real estate assets, following the disposition of retail properties in Chilliwack, British Columbia, and the Greater Toronto Area, as reported in the company’s Q2 and Q3 2024 earnings results, it said.
Real estate remains a key pillar for Canadian Tire’s business model. According to the company, surplus properties present opportunities for value creation through sales, entitlement processes, or redevelopment.
The transaction is expected to close in Q4 2024, subject to customary closing conditions.
Hicks highlighted that the sale reflects Canadian Tire’s ability to balance operational efficiency with shareholder value. “This is a prime example of how we continue to evolve as a company, ensuring that our strategic decisions align with our vision for the future while delivering value to our investors.”
As Canadian Tire continues to modernize its operations, strategic moves like this reinforce the company’s commitment to operational excellence and long-term growth.
About Canadian Tire
Canadian Tire Corporation is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. The 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.
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