Canadian Tire Works Sale-Lease Deal

Canadian Tire Corp. has worked out a sale and lease back deal on 12 of its newer locations, which will net the company some $174 million.

Canadian Tire said it expects a pre-tax gain on the sale of approximately $70 million, which will be amortised over the initial 15-year term of the leases.

“While we continue to see real value in owning the majority of our real estate assets, carefully selected sale/leasebacks enable us to monetise the value of select properties creating financial flexibility while maintaining our overall operating flexibility,” says Tom Gauld, president and CEO of Canadian Tire. “The properties included in this transaction are locations featuring stores that are either new or recently expanded so we do not see a need to relocate these stores in the foreseeable future. This enables us to monetise these sites at attractive rates while creating financial flexibility.” (Tire Review/Akron)