Canadian Tire President and CEO Stephen Wetmore speaks at the company's annual general meeting in Toronto on Thursday May 9, 2013. THE CANADIAN PRESS/Frank Gunn
May 09, 2013 - 5:08 AM
TORONTO - Canadian Tire Corp. Ltd. (TSX:CTC.a) is planning to create a $3.5-billion real estate investment trust to unlock the value of its property holdings, with an initial public offering expected later this year.
The move follows on the heels of a similar plan by grocer Loblaw Companies Ltd. (TSX:L).
It came as the high-profile retailer of general merchandise, sporting goods, financial services and automotive products and services announced a 2.9 per cent increase in first-quarter earnings amid a 1.7 per cent increase in total revenue.
The proposed new REIT would acquire a majority of the company's real estate, including a geographically diverse portfolio of some 250 properties comprised largely of Canadian Tire Retail stores, Canadian Tire anchored retail developments and one distribution centre.
Canadian Tire says the properties, totalling about 18 million square feet, have an approximate market value of $3.5 billion.
News from © The Canadian Press, 2013