Canadian Tire Strikes Deal on Warehouses
(Akron/Tire Review) Canadian Tire Corp has reached agreement for the sale and leaseback of two of its distribution centres, located in Brampton, Ontario and Calgary, Alberta, to H&R Real Estate Investment Trust. The $229 million deal involves Canadian Tire leasing the facilities back.
The retailer said that proceeds from the deal would be used “to fund strategic initiatives outlined in the company’s 2005-2009 Strategic Plan.”
“The current real estate environment is favorable for this type of transaction,” says Wayne Sales, president and CEO of Canadian Tire. “We were able to take advantage of market opportunities for the sale and leaseback of the distribution centers in a manner that maintains our operating flexibility while freeing up capital to re-deploy in the business”
Canadian Tire has more than 1,100 owned and franchised stores throughout Canada.