Canadian Tire Corporation (CTC) has announced the sale of its 1.5-million-square-foot distribution centre located at Bramalea and Steeles Roads in Brampton. The transaction, valued at $258 million, reflects the company’s shift towards more modern and automated supply chain facilities in the Greater Toronto Area (GTA).
A Milestone in Canadian Tire’s Supply Chain Evolution
The 90-acre industrial property, built 50 years ago, was once a cornerstone of Canadian Tire’s distribution network. However, as the company continues to modernize its operations, the facility has become surplus to its needs.
“Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain,” said Greg Hicks, Canadian Tire’s President and CEO. “In that same spirit, we have been investing and evolving, introducing modern and sophisticated facilities in the region, which are key to our supply chain of the future.”
Hicks added, “Our need for the site has decreased significantly in recent years. This transaction offers a clear example of our ability to surface shareholder value from surplus real estate assets.”
Modernizing the GTA Distribution Network
Canadian Tire’s state-of-the-art distribution facilities in the GTA include:
- A 1.5-million-square-foot facility in Bolton, opened in 2017 and developed by Montreal-based Broccolini.
- A 1.3-million-square-foot facility on Hurontario Street in Brampton, opened in recent years and developed by Panattoni.
These newer facilities are equipped with advanced automation and technology, enhancing Canadian Tire’s supply chain efficiency and capacity.
Transaction Details
- The sale of the Brampton property followed a North American-wide bidding process that began earlier this year.
- The transaction is expected to result in a pre-tax gain of approximately $240 million upon closing, which is anticipated during the fourth quarter of 2024.
- Proceeds from the sale will be used to reduce borrowings associated with Canadian Tire’s repurchase and consolidation of its Financial Services division in October 2023.
- The buyer of the facility has not been disclosed, and the transaction remains subject to customary closing conditions.
Real Estate Strategy and Recent Divestments
The sale of the Brampton distribution centre follows other property divestments by Canadian Tire in 2024, including retail properties in Chilliwack, British Columbia, and the GTA. These transactions are part of Canadian Tire’s ongoing strategy to unlock value from its real estate portfolio while focusing on operational priorities.
About Canadian Tire Corporation
Canadian Tire Corporation is a leading retail, financial services, and real estate group with nearly 1,700 retail and gasoline outlets across Canada. The company operates iconic brands including Canadian Tire, Mark’s, SportChek, and Helly Hansen, among others. Founded in 1922, Canadian Tire is committed to delivering value and innovation to its customers and shareholders.