Canadian Tire real estate offering raised $263.5 million: Report CT Real Estate Investment Trust sold 26.35 million trust units for C$10 each according to people familiar with the transaction
Canadian Tire real estate offering raised $263.5 million: Report
CT Real Estate Investment Trust sold 26.35 million trust units for C$10 each according to people familiar with the transaction
Sources say a recent Canadian Tire REIT raised $263.5 million.
Photograph by: Jonathan Hayward
Corp.’s real estate investment trust raised C$263.5 million ($253
million) in an initial public offering, according to two people familiar
with the transaction.
CT Real Estate Investment Trust, created by
the country’s largest sporting goods retailer, sold 26.35 million trust
units for C$10 each, with an initial yield of 6.5 percent, said the
people, who asked not to be identified because the terms aren’t public.
Tire created the REIT to spin off about 72 per cent of its real estate
portfolio, the Toronto-based company said in a Sept. 24 presentation
filed with Canadian regulators. The REIT will acquire 256 commercial
properties totaling 19 million square feet after its IPO closes the week
of Oct. 21, the company said.
Canadian Tire, a 91-year-old
company that also owns clothier Mark’s Work Warehouse, PartSource and
sports chains Sport Chek and Sports Experts, will hold 85 per cent of
the REIT after the sale closes, the documents show. Royal Bank of Canada
and Canadian Imperial Bank of Commerce led the sale.
receive preferential tax treatment from the government, are companies
that invest in income-producing real estate and pay out most of their
income to investors through monthly cash distributions. Robert Nicol, a
Canadian Tire spokesman, declined to comment.
Canadian Tire is
following Brampton, Ontario-based Loblaw in selling property to unlock
value from their stores in Canada’s largest cities. Loblaw’s Choice
Properties raised C$400 million in June in Canada’s largest REIT IPO.
Hudson’s Bay Co., Canada’s oldest department store chain, also said it’s
considering a REIT after it completes a $2.4 billion takeover of New
York-based luxury retailer Saks Inc.
CT REIT will trade on the Toronto Stock Exchange under the symbol CRT-U.
Source: The Vancouver Sun
This entry was posted on October 25th, 2013
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