Brampton 2111 Steeles Avenue East | ?m | ?s | Prologis

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AHK

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Former Canadian Tire Brampton Steeles East warehouse site, 90 Acres, short distance from the Bramalea Go Station, has been sold for $258 Million, proceeds which realize a capital gain of $240 Million for Canadian Tire! Purchaser was not identified. From the news releases:

Canadian Tire Corporation to sell Brampton industrial property for $258 million​

TORONTO, Nov. 15, 2024 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) (CTC or the Company) today announced an agreement to sell a 90-acre industrial property in the Greater Toronto Area for total proceeds of $258 million. This follows a North American-wide competitive bid process initiated in the first quarter of 2024.

The property, located at the corner of Bramalea and Steeles in Brampton, Ontario, includes 1.5-million square feet of industrial real estate which is no longer needed for CTC's distribution centre requirements as a result of strategic supply chain investments and consolidation in recent years.

"Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain," said Greg Hicks, President and CEO, Canadian Tire Corporation. "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."

CTC's real estate portfolio remains a core asset and a source of potential value through the sale, entitlement or redevelopment of redundant properties. This transaction follows the sales of retail properties in Chilliwack, B.C. and the Greater Toronto Area, as disclosed with the Company's Q2 2024 and Q3 2024 results.

The transaction will result in a pre-tax gain of approximately $240 million on closing and will be treated as a normalizing item. The transaction is expected to close in the fourth quarter of 2024, 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.


Overview of the site:

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That doesn't inherently prevent mixed-use development - just likely... short mixed-use development.

It does depend on the noise contours from the airport though, as at a certain level they don't really support residential uses. I'm not sure what that looks like here.
 
I’m surprised Canadian Tire held on to that warehouse for so many years after the Goreway and Bolton sites opened. It’s definitely not of modern design for logistics hubs.

There’s definitely potential for mixed use, but there are several caveats: the Pearson north-south runway noise contours are definitely one of them, but they are less of a problem than the east-west paths as they are mostly unused.

To the south of Highway 407 are some noxious industrial uses, including a waste incinerator. There is also noise buffers required for the CN Halton Sub. There are high rise residential and mixed use proposals north of Steeles, but most of that is north of Orenda Road/East Drive.
 
I have some fond memories working in that building back right out of school surveying mechanical sensors/units. Walking in those 3 large buildings with all of the automated "trains" was pretty sweet as well as the view on the roof. Fun few weeks. (I'm sure I must have some photos on an old hard drive somewhere haha).
 
ShonTron said:
I’m surprised Canadian Tire held on to that warehouse for so many years after the Goreway and Bolton sites opened. It’s definitely not of modern design for logistics hubs.

There’s definitely potential for mixed use, but there are several caveats: the Pearson north-south runway noise contours are definitely one of them, but they are less of a problem than the east-west paths as they are mostly unused.

To the south of Highway 407 are some noxious industrial uses, including a waste incinerator. There is also noise buffers required for the CN Halton Sub. There are high rise residential and mixed use proposals north of Steeles, but most of that is north of Orenda Road/East Drive.
Click to expand...
The pandemic pushed the need to hold on to it a little longer. It was essentially being used for excess storage. The Dispatch team for their Fleet also worked out of that building until last week when a new dispatch office finally opened at their Goreway site.

CT held on to it about 10 years longer than they initially intended.

Fun fact: They actually filmed a season of Top Chef Canada there recently.
 
Purchaser is Prologis - planned use is warehousing. One hell of a price to pay for warehouse land....

From the Brampton Guardian:

We anticipate redeveloping the property’: U.S.-based company that bought Brampton Canadian Tire distribution centre for $258M a big player in Toronto, Hamilton area​

The 90-acre property is located at the corner of Bramalea Road and Steeles Avenue.

By Norm Nelson Brampton Guardian
Wednesday, December 4, 2024

Brampton Canadian Tire distribution centre


Canadian Tire sold its huge Brampton distribution centre for more than $250 million. Colliers Canada photo

The soon-to-be new owner of a 90-acre Canadian Tire distribution centre property that sold for more than a quarter of a billion dollars last month is an American-based company that calls itself “the global leader in logistics real estate.”

Canadian Tire last month said it sold its 90-acre property located at the corner of Bramalea Road and Steeles Avenue, for $258 million.

“The due diligence period is underway, with the deal expected to close around mid December,” said a spokesperson for Prologis, the company that bought it, in an email.

U.S.-based Prologis bill themselves as “one of the largest industrial property owners in the Greater Toronto and Hamilton Area market” with more than 40 properties, including this unique distribution centre in Brampton at Highway 50 and Countryside Drive that features a mass timber structure. Prologis has just bought the Canadian Tire distribution centre in Brampton at the corner of Bramalea Road and Steeles Avenue.

The American-based company calls itself “one of the largest industrial property owners in the Greater Toronto and Hamilton Area market” with 40 properties totalling more than 12 million square feet plus “an additional 2.5 million square feet of warehouse space … under construction, with 3.5 million square feet in the planning stages for future development.”

With its new Brampton property, it confirmed in the email that “a leaseback will be in place where the Canadian Tire distribution centre will continue to operate temporarily.”

As for long-term plans for the site, the company spokesperson said “it is early days, and we anticipate redeveloping the property into a modern, sustainable logistics facility that creates jobs and contributes to the Brampton economy.”

Canadian Tire said its need for the site, which it termed “a first-of-its-kind” facility in Canada 50 years ago, “had decreased significantly in recent years.”
 

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AHK said:
Purchaser is Prologis - planned use is warehousing. One hell of a price to pay for warehouse land....
Click to expand...

The headline number is high, but the price per acre is in line with GTA norms for warehousing sites.

The average trading price is 3M-5M per acre, for that use, for well sited parcels.

This is 2.87M per acre.
 
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