Canadian Tire REIT raises funds through share sale
The real estate investment trust of Canadian Tire Corp had raised CAD263.5 million or USD253 million during an initial public offer. This was confirmed by two individuals with familiarity with the transaction.
CT Real Estate Investment Trust was created by the largest retailer in sporting goods. It sold 26.35 million trust units at a cost of CAD10. There is an initial yield of 6.5% according to persons who sought to remain anonymous as the terms have not yet been made public.
Canadian Tire had created the REIT to spin off 72% of its real estate portfolio. This was confirmed with regulatory documentation filed with Canadian authorities. Overall, the REIT would be acquiring 256 commercial properties with a total square footage of 19 million after the closure of its share sale by October 21.
Canadian Tire is a firm which includes Mark's Work Warehouse, PartSource and Sports Chek and Sports Experts as part of its ownership. It would retain 85% of the REIT after the closure of the sale. This was confirmed by documentation filed by the company. The IPO would be led by the Royal Bank of Canada and the Canadian Imperial Bank.