OTTAWA (dpa-AFX) – Canadian Tire Corporation (CTC.TO) said Friday it agreed to sell a 90-hectare industrial property in the Greater Toronto Area for $258 million.

This follows a competitive bidding process for all of North America that began 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 that is no longer needed for CTC’s distribution center requirements as a result of strategic supply chain investments and consolidation in recent years.

The transaction will result in a pre-tax gain of approximately $240 million upon closing and will be treated as a normalizing item.

The transaction is expected to be completed in the fourth quarter of 2024.

The proceeds will be used to reduce leverage in connection with the company’s October 2023 repurchase and consolidation of the Canadian Tire Financial Services business.

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