Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Canadian Tire to Spin Off Stores in $3.5 Billion REIT

Don't Miss Out —
Follow us on:
Canadian Tire to Offer Shares in New C$3.5 Billion REIT
Cars are parked outside of a Canadian Tire Corp. store in Toronto. Photographer: Brent Lewin/Bloomberg

May 9 (Bloomberg) -- Canadian Tire Corp., the country’s largest sporting goods retailer, will create a C$3.5 billion ($3.5 billion) real estate investment trust in an initial public offering this year. The shares surged the most on record.

The REIT will acquire most of the company’s owned real estate, which includes about 250 properties comprised of mainly Canadian Tire retail stores and a distribution center, Toronto-based Canadian Tire said today in a statement. The properties would represent about 18 million square feet.

Canadian Tire plans to keep 80 percent to 90 percent of the REIT, which will have a minimal effect on the company’s earnings, the company said.

Shares rose 11 percent to C$82.36 at 4:14 p.m. trading in Toronto, the most since Nov. 13, 2008.

The sporting goods and automotive parts retailer joins Loblaw Cos., Canada’s biggest grocery chain by market value, which announced in December it plans to spin off about 35 million square feet of real estate worth about C$7 billion in a REIT IPO. The Brampton, Ontario-based company said on May 1 it plans to file regulatory documents for the IPO later this month and close the sale by early to mid July.

Hudson’s Bay Co., Canada’s oldest company, is also looking at creating a REIT “sometime in the future”, Chief Executive Officer Richard Baker said last month.

REIT IPOs

REITs have raised $760 million from six Canadian IPOs this year, including Milestone Apartments REIT and Agellan Commercial REIT, to account for 74 percent of $1.02 billion raised from initial offerings this year in the country, data compiled by Bloomberg show.

Canadian REITs raised almost $500 million in seven IPOs last year, more than any other industry in Canada, the data show.

To contact the reporters on this story: Liezel Hill in Toronto at lhill30@bloomberg.net; Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.