Toronto Discovery at Concord Park Place | ?m | 28s | Concord Adex | BDP Quadrangle



Canadian Tire reaches agreement to sell a non-strategic real estate asset for $149.7 million

TORONTO, Oct. 30 /CNW/ - Canadian Tire Corporation, Limited (CTC, CTC.a)today announced that it has reached agreement on the sale of approximately40-acres of surplus lands in the Leslie and Sheppard area of Toronto to
Concord Adex Investments Limited of Vancouver for total proceeds of $149.7million. In addition to the purchase price, the purchaser will make significant infrastructure investments in the local road network and toward the creation of a community park.

The lands are located at the site of Canadian Tire's former warehouse property at Sheppard Avenue and Leslie Street in the North York region of Toronto. The site has been zoned for four million square feet of residential
use, representing approximately 4,000 residential units. Canadian Tire will retain approximately three acres of land for future use and will also retain the existing Canadian Tire store site, which also includes a Mark's Work Wearhouse store.

"By selling this property in Toronto we are continuing to surface value from our surplus real estate assets that no longer hold strategic value, a key imperative of our current strategic plan," said Tom Gauld, president and CEO,
Canadian Tire Corporation, Limited.

The structure of the transaction includes payment terms over 10 years or faster at the discretion of Concord Adex. The agreement follows a North American-wide competitive bid process. The transaction structure and purchase
price are designed to maximize the value of the site, reflecting the significant upfront infrastructure investment required by the purchaser as well as the phased build-out schedule required due to the size of the property.

Scheduled to close by the end of November 2006, the transaction will result in pre-tax earnings of approximately $121 million. A gain of approximately $51 million will be recorded on closing, with the remaining $70 million recorded as imputed interest over the life of the agreement. The gain of $51 million will be treated as a non-operating item and as such this transaction will not change the Company's existing earnings guidance for 2006 of $4.25 to $4.40 per share excluding non-operating items.

Canadian Tire owns about 70 percent of its Canadian Tire Retail store network and leases the majority of its other retail properties. Canadian Tire views its Canadian Tire Retail store network as strategic assets due to the
important flexibility real estate ownership provides for its continued store transformation activities. This transaction is part of Canadian Tire's stated strategy to monetize non-strategic real estate assets, which also includes the
ongoing disposition of surplus real estate created by the store network transformation activities.

Most recently, the Company announced a sale-leaseback transaction for two distribution centres in the first quarter of 2006, yielding a $50 million gain. In 2005, the Company undertook a sale-leaseback transaction of a Canadian Tire- anchored multi-tenant urban property in Vancouver and sold a property zoned for residential use in Toronto.
A subway to the land formerly known as Canadian-Tire property?
The TTC collector at Bessarion is going to have to practice helping more than 3 people an hour.
I wonder if they will attempt to broach the 28 storey limit. I hope so.
wow, I wonder how many condos they can build there? CityPlace North.
Next up would be the couple of sidestreets between the Canaidan Tire land and NY Towers...people are buying those houses hoping some condo developer with want them eventually.
I hope they create a stronger presence with more mid-rises fronting Sheppard as well as better urban design for the entire area; they should have learned a thing or two from CityPlace.

awesome as Cityplace would have been a fabulous addition to the city were it not directly in the downtown core

BTW, The nearby proposal at 25 Buchan is about to hit the market
I'd love to see Concord Adex do a sequel to Daniels' NY Towers... the HK Towers! :)

It's encouraging to see Concord Adex developing outside of Cityplace. Despite criticisms of things like urban design and construction quality, CA a developer that is capable of doing big, amazing things and is willing to experiment with new concepts. Way to go.
I'd love to see Concord Adex do a sequel to Daniels' NY Towers... the HK Towers!

Edit: Let me rephrase that. I really hope no one ever attempts something as silly and embarassing as NY Towers again.
I wonder if Concord will do smaller projects in TO - over here in Vancouver, the near completion of the Expo site has them doing - gasp - a boutique project in Gastown. They are also doing suburban projects, so I could see them doing a Mississauga project too.
"Edit: Let me rephrase that. I really hope no one ever attempts something as silly and embarassing as NY Towers again"

I'm guessing you've never seen them in person...few say they're not impressive when they see the sun glint off the roofs driving up and down the 401.
I have seen them in person. From afar and up close. So I am speaking from experience when I say that I find the NY Towers to be some of the silliest buildings erected in Canada. Though I also assume that some people will like them since many people enjoy Las Vegas or Niagara Falls or Orlando, cities where these towers would probably fit in fine.