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TORONTO, Oct. 23, 2013 /CNW/ - Canadian Tire Corporation, Limited
("Canadian Tire" or the "Company") (TSX: CTC) (TSX: CTC.a) announced
today that CT Real Estate Investment Trust ("CT REIT") (TSX: CRT.UN)
has completed a $263.5 million initial public offering of trust units
(the "Units"). In connection with the closing of the initial public
offering, Canadian Tire sold a portfolio of 256 properties (the
"Portfolio of Properties") indirectly to CT REIT for a total purchase
price of approximately $3.5 billion.
At closing, Canadian Tire holds an approximate 85.0% effective interest
in CT REIT (and will hold an approximate 83.1% effective interest if
the over-allotment is exercised in full) on a fully diluted basis
through ownership of 59,711,094 Units and all of the Class B limited
partnership units of CT REIT Limited Partnership (the "Partnership"),
which are economically equivalent to and exchangeable for Units. In
addition, Canadian Tire holds all of the outstanding Class C limited
partnership units of the Partnership.
The Offering was underwritten by a syndicate of investment banks with
RBC Capital Markets and CIBC acting as joint bookrunners. CT REIT has
granted the underwriters an over-allotment option, exercisable at any
one time up to 30 days following the closing, to purchase up to an
additional 3,952,500 Units, which if exercised in full, would increase
the total gross proceeds of the Offering to approximately $303 million.
The net proceeds of the over-allotment option would be used by CT REIT
for future acquisitions, investments in properties and for general
"Real estate has always played an integral role in Canadian Tire's
strategy and success and CT REIT will provide a new opportunity for
continuing our investment in this core asset," said Stephen Wetmore,
President and CEO, Canadian Tire Corporation. "Canadian Tire is fully
committed to the success of CT REIT and we look forward to being the
majority unit holder for a very long time."
The Portfolio of Properties represents approximately 19 million square
feet of gross leasable area, comprised of 255 retail properties and one
distribution centre. The Portfolio of Properties represented
approximately 72% of Canadian Tire's owned real estate square footage.
Canadian Tire's remaining commercial properties comprise an aggregate
of approximately seven million square feet of gross leasable area.
Canadian Tire has advised CT REIT that it anticipates that
approximately three quarters of its remaining owned properties will
ultimately be suitable to be offered to CT REIT at some time in the
future, with approximately a quarter likely being suitable to be
offered to CT REIT over the next five years.
Canadian Tire will be CT REIT's most significant tenant for the
foreseeable future. At closing, the Canadian Tire retail properties
and Canadian Tire distribution centre represented approximately 95.7%
of CT REIT's annual base minimum rent and 97.4% of CT REIT's annual
base minimum rent if all CTC banner stores are included.
About Canadian Tire
Canadian Tire Corporation, Limited (TSX:CTC.a) (TSX:CTC) is a Family of
Companies that includes Canadian Tire Retail, PartSource, Gas+, FGL
Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports,
Intersport, Pro Hockey Life and Atmosphere), Mark's, CT REIT and
Canadian Tire Financial Services. With nearly 1,700 retail and
gasoline outlets from coast-to-coast, our primary retail business
categories - Automotive, Living, Fixing, Playing and Apparel - are
supported and strengthened by our Financial Services division. Over
85,000 people are employed across the Canadian Tire enterprise, which
was founded in 1922 and remains one of Canada's most recognized and
trusted brands. For more information, visit Corp.CanadianTire.ca.
This press release contains forward-looking information within the
meaning of applicable securities legislation, which reflects Canadian
Tire's current expectations regarding future events. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond Canadian
Tire's control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include, but
are not limited to, changes in economic and market conditions, and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time to
time, including the "Risk Factors" section of our Annual Information
From for fiscal 2012 and our 2012 Management Discussion and Analysis
and under "Risk Factors" in the final prospectus of CT REIT dated
October 10, 2013. Canadian Tire does not undertake any obligation to
update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly required
by applicable law.
SOURCE: CANADIAN TIRE CORPORATION, LIMITED
For further information:
Media: Amy Cole, 416-544-7655, firstname.lastname@example.org
Investors: Andrea Orzech, 416-480-3195, email@example.com