/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES./
TORONTO, Sept. 10, 2013 /CNW/ - Canadian Tire Corporation,
Limited (the "Company" or "Canadian Tire") (TSX:CTC, TSX:CTC.a) and
CT Real Estate Investment Trust ("CT REIT") announced today that CT
REIT has filed and obtained a receipt for a preliminary prospectus
in respect of its initial public offering of trust units (the
"Units") with the securities regulatory authorities of all
provinces and territories in Canada.
Canadian Tire has taken the initiative in
establishing CT REIT in order to create an investment grade public
real estate entity that would allow CT REIT to benefit from its
relationship with Canadian Tire to generate reliable, durable and
growing monthly cash distributions on a tax-efficient basis.
The portfolio of properties to be acquired by CT
REIT from Canadian Tire on closing will consist of 256 properties
totaling approximately 19 million square feet of gross leasable
area ("GLA"), consisting of 255 retail properties located across
Canada and one distribution centre
(collectively, the "Initial Properties").
Overview
- The Initial Properties represent approximately 72% of Canadian
Tire's owned real estate portfolio (measured by square feet).
- The aggregate purchase price for the Initial Properties to be
acquired from Canadian Tire will be determined in connection with
the pricing of the Units.
- Canadian Tire will be CT REIT's most significant tenant for the
foreseeable future with Canadian Tire retail stores and the
distribution centre, which supports Canadian Tire Retail's
operations, representing approximately 95.7% of CT REIT's base
minimum rent in 2014.
- On closing, CT REIT will enter into leases with Canadian Tire
in respect of Canadian Tire retail stores with staggered initial
terms ranging from 10 to 21 years, with a weighted average initial
term of approximately 16 years, and CT REIT and Canadian Tire will
enter into a lease in respect of the distribution centre with an
initial term of 17 years.
- Canadian Tire views the creation of CT REIT as a preferred
structure by which it can continue to own a significant interest in
its Canadian Tire retail store properties while surfacing the value
of its real estate and believes that continuing to own a majority
interest in CT REIT is consistent with its long-term strategy.
- The offering of Units is being joint bookrun by RBC Capital
Markets and CIBC.
The REIT has been assigned a provisional issuer
credit rating of "BBB (high)" by DBRS and "BBB+" by S&P, both
with a "stable" outlook. In addition, after considering the REIT
transaction, both rating agencies recently confirmed Canadian
Tire's credit ratings of "BBB (high)" and "BBB+," respectively,
each with a "stable" outlook and Canadian Tire expects that both
rating agencies will confirm those credit ratings following
closing.
The preliminary prospectus has not yet become
final for the purpose of a distribution of Units to the public.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale or any
acceptance of an offer to buy Units in any province or territory of
Canada prior to the time a receipt
for the final prospectus or other authorization is obtained from
the securities commission or similar regulatory authority in such
province or territory. Copies of the preliminary prospectus are
available on SEDAR at www.sedar.com.
Completion of the initial public offering of
Units is subject to and conditional upon the receipt of all
necessary approvals, including regulatory approvals.
The Units have not been, nor will they be,
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered, sold or delivered, directly or indirectly, in
the United States or to, or for
the account or benefit of, ''U.S. persons'' (as defined in
Regulation S under the United States Securities Act of 1933, as
amended) except pursuant to certain exemptions. This press release
does not constitute an offer to sell or a solicitation of an offer
to buy any of the Units in the United
States or to, or for the account or benefit of, U.S.
persons.
About CT Real Estate Investment Trust
CT Real Estate Investment Trust is an
unincorporated, closed end real estate investment trust formed to
own income producing commercial properties primarily located in
Canada. Its portfolio will be
comprised of 256 properties totaling approximately 19 million
square feet of GLA, consisting of 255 retail properties located
across Canada and one distribution
centre. Canadian Tire is CT REIT's most significant tenant.
About Canadian Tire
Canadian Tire Corporation, Limited (TSX:CTC.a)
(TSX:CTC) is a Family of Companies that includes Canadian Tire
Retail, Partsource, Gas+, FGL Sports (Sport Chek, Hockey Experts,
Sports Experts, National Sports, Intersport, Pro Hockey Life and
Atmosphere), Mark's and Canadian Tire Financial Services. With
nearly 1,700 retail and gasoline outlets from coast-to-coast, our
primary retail business categories - Automotive, Living, Fixing,
Playing and Apparel - are supported and strengthened by our
Financial Services division. Over 85,000 people are employed across
the Canadian Tire enterprise, which was founded in 1922 and remains
one of Canada's most recognized
and trusted brands. For more information, visit
Corp.CanadianTire.ca.
Forward-Looking Statements
This press release contains forward-looking
information within the meaning of applicable securities
legislation, which reflects Canadian Tire's and CT REIT's current
expectations regarding future events. Forward-looking information
is based on a number of assumptions and is subject to a number of
risks and uncertainties, many of which are beyond Canadian Tire's
or CT REIT's control, that could cause actual results and events to
differ materially from those that are disclosed in or implied by
such forward-looking information. Such risks and uncertainties
include, but are not limited to, failure to complete the initial
public offering of Units of CT REIT and related transactions, and
the factors discussed under "Risk Factors" in the preliminary
prospectus of CT REIT dated September 10,
2013. Neither Canadian Tire nor CT REIT undertake any
obligation to update such forward-looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law.
SOURCE Canadian Tire Corporation, Limited