FX.co ★ Canadian Tire To Sell 90-acre Industrial Property In Toronto For $258 Mln

Canadian Tire Corporation (CTC.TO) announced on Friday that it has entered into an agreement to sell a 90-acre industrial site in the Greater Toronto Area for $258 million. This decision follows a competitive bidding process conducted across North America, which began in the first quarter of 2024.

The property, situated at the intersection of Bramalea and Steeles in Brampton, Ontario, features 1.5 million square feet of industrial space. This facility is no longer required for the corporation's distribution centre needs due to strategic supply chain investments and consolidation efforts made in recent years.

Upon closing, the transaction is projected to realize a pre-tax gain of approximately $240 million, which will be classified as a normalizing item. The completion of the sale is anticipated in the fourth quarter of 2024.

The proceeds from this sale will be utilized to decrease the borrowings linked to the company's buyback and consolidation of Canadian Tire Financial Services business, which took place in October 2023.