Canadian Tire Corp. (CTC-T) has an agreement to sell its 90-acre industrial property and 1.5-million-square-foot warehouse in the Toronto suburb of Brampton for $258 million.

Canadian Tire says the distribution facility, located near Bramalea and Steeles roads, is no longer needed. The company will operate out of its newer, more modern, more highly automated facilities in the Greater Toronto Area.

"Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain," Greg Hicks, Canadian Tire’s president and CEO, said in the Friday morning announcement. "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."

"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."

The buyer of the facility was not immediately identified.

Canadian Tire's GTA distribution network

Canadian Tire’s nearby distribution centre on Coleraine Dr., in Bolton also comprises about 1.5 million square feet of space, and was developed by Montreal-based Broccolini. It opened in 2017. The firm also has a 1.3-million-square-foot facility along Hurontario St., in Brampton which opened a couple of years ago, and was developed by Panattoni.

This transaction follows a couple of other sales by Canadian Tire during 2024, divestments of retail properties in Chilliwack, B.C. and the Greater Toronto Area disclosed with the company's Q2 and Q3 financial reports.  

Marketing for the property began early in 2024, and the sale comes following a North American-wide bidding process to determine a new owner.

Canadian Tire reports the transaction will result in a pre-tax gain of approximately $240 million on closing, which is expected during the fourth quarter. The transaction also remains subject to customary closing conditions.

Proceeds will be used to reduce borrowings associated with the company's October 2023 repurchase and consolidation of the Canadian Tire Financial Services business, the company states.

About Canadian Tire Corp.

Canadian Tire Corp., is a group of companies that includes retail, financial services and CT REIT divisions. 

The retail business is led by its flagship Canadian Tire brand, which was founded in 1922. It also includes banners such as Mark's, Pro Hockey Life, SportChek, Hockey Experts, Sports Experts and Atmosphere. 

The company has close to 1,700 retail and gasoline outlets across the country. 

In addition, CTC owns and operates Helly Hansen, an outdoor goods brand based in Oslo, Norway.