/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES./
TORONTO, Oct. 10, 2013 /CNW/ - CT Real Estate Investment
Trust ("CT REIT" or the "REIT") and Canadian Tire Corporation,
Limited ("Canadian Tire" or the "Company") (TSX: CTC, TSX: CTC.a)
announced today that the REIT has filed and obtained a receipt from
the securities regulatory authorities of all provinces and
territories in Canada for a final
prospectus in respect of the initial public offering of 26,350,000
trust units (the "Units") of the REIT (the "Offering"). The Units
will be issued at a price of $10.00
per Unit (the "Offering Price") and are expected to provide
Unitholders with an annual yield of approximately 6.50%. Gross
proceeds of the Offering will be $263.5
million.
Copies of the final prospectus will be available
under CT REIT's issuer profile on SEDAR at sedar.com.
The closing of the Offering is expected to occur
on or about October 23, 2013.
In connection with the closing, the net proceeds of the Offering
will be partly used by CT REIT to indirectly acquire, through CT
REIT Limited Partnership (the "Partnership"), from Canadian Tire a
portfolio of real estate that will consist of 256 properties
totaling approximately 19.0 million square feet of gross leasable
area, comprising 255 retail properties and one distribution
centre.
The Offering is being underwritten by a
syndicate of underwriters with RBC Capital Markets and CIBC acting
as joint bookrunners. The underwriters have been granted an
over-allotment option, exercisable at any one time up to 30 days
following closing to purchase up to an additional 3,952,500 Units
which, if exercised in full, will increase the total gross proceeds
of the Offering to approximately $303
million. The net proceeds of the over-allotment option will
be used by CT REIT for future acquisitions, investments in
properties and for general trust purposes.
On closing, it is expected that Canadian Tire
will hold an approximate 85.0% effective interest (or an
approximate 83.1% effective interest if the over-allotment is
exercised in full) on a fully diluted basis in CT REIT through
ownership of 59,711,094 Units and all of the Class B limited
partnership units of the Partnership, which are economically
equivalent to and exchangeable for Units. In addition, Canadian
Tire will hold all of the outstanding Class C limited partnership
units of the Partnership.
CT REIT will be managed and operated by an
experienced internal management team. 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 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.
CT REIT initially intends to make monthly cash
distributions of $0.054167 per Unit.
The first distribution of the REIT will be in the amount of
$0.070194 per Unit for the period
from closing to November 30, 2013 and
will be paid on December 13, 2013,
assuming closing occurs on October 23,
2013. Declared distributions will be paid on or about the
15th day of each month to Unitholders of record at the close of
business on the last business day of the immediately preceding
month.
The Toronto Stock Exchange has conditionally
approved the listing of the Units under the symbol "CRT.UN".
Listing is subject to the REIT fulfilling all of the requirements
of the TSX on or before December 30,
2013.
Following closing and subject to regulatory
approvals, CT REIT intends to adopt a Distribution Reinvestment
Plan ("DRIP"). Eligible Unitholders who elect to participate in the
DRIP will receive a further distribution of Units equal to three
per cent of the amount reinvested.
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 final prospectus
of CT REIT dated October 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 CT REIT