Canadian Tire Corporation (CTC-T) has reached an agreement to sell its 90-acre industrial property and 1.5 million square foot warehouse in the Toronto suburb of Brampton for $258 million.

Canadian Tire says the distribution facility, located near Bramalea and Steeles roads, is no longer needed. The company will operate from its newer, more modern and more highly automated facilities located in the Greater Toronto Area.

“Fifty years ago, this site was the first of its kind in Canada and a fundamental part of our supply chain,” said Greg Hicks, president and CEO of Canadian Tire, during Friday’s announcement. Morning. “In the same spirit, we have invested and evolved, introducing modern and sophisticated facilities to the region, which are essential to our supply chain of the future. »

“Our need for the site has declined significantly in recent years. This transaction provides a clear example of our ability to generate shareholder value from excess real estate assets.”

The buyer of the facility was not immediately identified.

Canadian Tire distribution network in the Greater Toronto Area

Canadian Tire’s neighboring distribution center on Coleraine Dr. in Bolton also includes about 1.5 million square feet of space and was developed by Montreal-based Broccolini. It opened in 2017. The company also has a 1.3 million square foot facility along Hurontario Street in Brampton that opened a few years ago and was developed by Panattoni.

This transaction follows a few other sales by Canadian Tire in 2024, retail property dispositions in Chilliwack, British Columbia and the Greater Toronto Area, disclosed in the company’s second and third quarter financial reports. the company.

Marketing of the property began in early 2024, and the sale follows a North American-wide bidding process to determine a new owner.

Canadian Tire reports that the transaction will result in a pre-tax gain of approximately $240 million upon closing, which is expected during the fourth quarter. The transaction also remains subject to customary closing conditions.

The proceeds will be used to reduce borrowings associated with the company’s October 2023 buyout and consolidation of the Canadian Tire Financial Services business, the company says.

About Canadian Tire Corporation

Canadian Tire Corporation is a group of companies that includes retail, financial services and CT REIT divisions.

The retail sector is led by its flagship brand Canadian Tire, founded in 1922. It also includes banners such as Mark’s, Pro Hockey Life, SportChek, Hockey Experts, Sports Experts and Atmosphere.

The company has nearly 1,700 retail and gasoline locations across the country.

Additionally, CTC owns and operates Helly Hansen, an outdoor brand based in Oslo, Norway.