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TORONTO -- Canadian Tire Corp. Limited announced the sale and leaseback of its Cambie Street real-estate project in Vancouver, to RioCan Real Estate Investment Trust for proceeds of $44.5 million. The company expects to realize a pre-tax gain on the sale of approximately $8.9 million, which will be amortized over the twenty-year term of the Canadian Tire store lease.
"As part of our 2005-2009 Strategic Plan, we are continuing with our network expansion and are looking at ways to optimize the value of our real estate portfolio,” said Wayne Sales, president and CEO of Canadian Tire. “The Cambie transaction demonstrates our ability to leverage our real estate competencies to create cost-effective opportunities for our retail businesses and to unlock value for our shareholders."
The prime real estate site includes a 4-story building anchored by a unique, highly customized new Canadian Tire Associate Store recently opened to positive customer response.
"The Cambie property is an attractive urban location in an expensive real estate market," added Ken Silver, president, Canadian Tire Real Estate. "By taking a unique value-added approach, it was economically feasible for us to position our store on a site that would enable us to better serve our customers living in this high density urban area."
Canadian Tire Corporation, Limited operates more than 1,100 stores, gas bars and car washes in an inter-related network of businesses engaged in retail, financial services and petroleum.
In other real estate news, Ricker's Oil is building a sixth service station and c-store in Indiana on a two-acre plot, the Ind.-based Star Press reported.
The store is expected to open in December, according to Jay Ricker, president of the company, which operates 33 gas station/convenience stores in or near Anderson, Muncie and Fort Wayne, Indiana as well as Indianapolis's north side.
"We thought the area was under-served, with nothing out there for consumers' needs," Ricker said. "And, there is more and more traffic as time goes on. We recently opened another station along highway I-69, and it has been doing very well."