Last Updated on December 4, 2024 by CREW Editorial
On November 15, 2024, the Canadian Tire Corporation (CTC) announced an agreement to sell a significant industrial property in Brampton, Ontario, for $258 million. The press release indicated that the sale, resulting from a North American-wide competitive bidding process earlier this year, was part of a strategic move by the company to optimize its real estate portfolio.
The property, located at the intersection of Bramalea Road and Steeles Avenue in Brampton, spans 90 acres and includes 1.5 million square feet of industrial facilities. These facilities, previously central to Canadian Tire Corporation’s distribution operations, are no longer needed due to recent upgrades and consolidations in the company’s supply chain infrastructure.
Greg Hicks, President and CEO of Canadian Tire Corporation, highlighted the historical significance of the site, stating, “Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain. 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.”
Canadian Tire Corporation views the sale as an opportunity to unlock value from surplus real estate assets. This follows similar transactions involving retail properties in Chilliwack, British Columbia, and the Greater Toronto Area earlier in 2024. The Brampton transaction is expected to generate a pre-tax gain of approximately $240 million, which will be accounted for as a normalizing item upon closing in the fourth quarter of 2024, subject to standard closing conditions.
The proceeds from the sale will be used to reduce debt incurred during the October 2023 buyout and consolidation of Canadian Tire Financial Services, underscoring Canadian Tire Corporation’s focus on financial optimization.
The buyer’s identity was not disclosed in the announcement. Canadian Tire Corporation noted that some statements in its press release, such as anticipated outcomes and plans, are forward-looking and may change due to unforeseen risks or circumstances.
The press release also indicated that the transaction reaffirms Canadian Tire Corporation’s commitment to leveraging its real estate portfolio to support the company’s evolving business needs while maximizing shareholder value.
