Canadian Tire Plans $3.5-billion REIT with IPO in the Fall
Canadian Tire Corp. is taking a page from Loblaw Cos. Ltd.’s books, unveiling plans to spin off most of its billions in property holdings into a real estate investment trust.
The REIT would own the Canadian chain’s portfolio of some 250 properties, roughly 18 million square feet worth $3.5-billion, the company announced Thursday. Canadian Tire would hold 80 per cent to 90 per cent of the REIT, with the rest going to investors through an initial public offering planned for the fall.
The company holds more than that going into the REIT, but stores under scrutiny for replacement, development or relocation wouldn’t be included.
“We are executing a strategy that reinforces the strength of our Company while pursuing new growth opportunities organically and through acquisition,” said chief executive officer Stephen Wetmore.