CT Real Estate Investment Trust Files Preliminary Prospectus for Initial Public Offering of Trust Units

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

TORONTO, Sept. 10, 2013 /CNW/ - Canadian Tire Corporation, Limited (the "Company" or "Canadian Tire") (TSX:CTC, TSX:CTC.a) and CT Real Estate Investment Trust ("CT REIT") announced today that CT REIT has filed and obtained a receipt for a preliminary prospectus in respect of its initial public offering of trust units (the "Units") with the securities regulatory authorities of all provinces and territories in Canada.

Canadian Tire has taken the initiative in establishing CT REIT in order to create an investment grade public real estate entity that would allow CT REIT to benefit from its relationship with Canadian Tire to generate reliable, durable and growing monthly cash distributions on a tax-efficient basis.

The portfolio of properties to be acquired by CT REIT from Canadian Tire on closing will consist of 256 properties totaling approximately 19 million square feet of gross leasable area ("GLA"), consisting of 255 retail properties located across Canada and one distribution centre (collectively, the "Initial Properties").

Overview

• The Initial Properties represent approximately 72% of Canadian Tire's owned real estate portfolio (measured by square feet).
  
  
• The aggregate purchase price for the Initial Properties to be acquired from Canadian Tire will be determined in connection with the pricing of the Units.
  
  
• Canadian Tire will be CT REIT's most significant tenant for the foreseeable future with Canadian Tire retail stores and the distribution centre, which supports Canadian Tire Retail's operations, representing approximately 95.7% of CT REIT's base minimum rent in 2014.
  
  
• On closing, CT REIT will enter into leases with Canadian Tire in respect of Canadian Tire retail stores with staggered initial terms ranging from 10 to 21 years, with a weighted average initial term of approximately 16 years, and CT REIT and Canadian Tire will enter into a lease in respect of the distribution centre with an initial term of 17 years.
  
  
• Canadian Tire views the creation of CT REIT as a preferred structure by which it can continue to own a significant interest in its Canadian Tire retail store properties while surfacing the value of its real estate and believes that continuing to own a majority interest in CT REIT is consistent with its long-term strategy.
  
  
• The offering of Units is being joint bookrun by RBC Capital Markets and CIBC.

The REIT has been assigned a provisional issuer credit rating of "BBB (high)" by DBRS and "BBB+" by S&P, both with a "stable" outlook. In addition, after considering the REIT transaction, both rating agencies recently confirmed Canadian Tire's credit ratings of "BBB (high)" and "BBB+," respectively, each with a "stable" outlook and Canadian Tire expects that both rating agencies will confirm those credit ratings following closing.

The preliminary prospectus has not yet become final for the purpose of a distribution of Units to the public. This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy Units in any province or territory of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar regulatory authority in such province or territory. Copies of the preliminary prospectus are available on SEDAR at www.sedar.com.

Completion of the initial public offering of Units is subject to and conditional upon the receipt of all necessary approvals, including regulatory approvals.

The Units have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, ''U.S. persons'' (as defined in Regulation S under the United States Securities Act of 1933, as amended) except pursuant to certain exemptions. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. persons.

About CT Real Estate Investment Trust

CT Real Estate Investment Trust is an unincorporated, closed end real estate investment trust formed to own income producing commercial properties primarily located in Canada. Its portfolio will be comprised of 256 properties totaling approximately 19 million square feet of GLA, consisting of 255 retail properties located across Canada and one distribution centre. Canadian Tire is CT REIT's most significant tenant.

About Canadian Tire

Canadian Tire Corporation, Limited (TSX:CTC.a) (TSX:CTC) is a Family of Companies that includes Canadian Tire Retail, Partsource, Gas+, FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere), Mark's and Canadian Tire Financial Services. With nearly 1,700 retail and gasoline outlets from coast-to-coast, our primary retail business categories - Automotive, Living, Fixing, Playing and Apparel - are supported and strengthened by our Financial Services division. Over 85,000 people are employed across the Canadian Tire enterprise, which was founded in 1922 and remains one of Canada's most recognized and trusted brands. For more information, visit Corp.CanadianTire.ca.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects Canadian Tire's and CT REIT's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Canadian Tire's or CT REIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, failure to complete the initial public offering of Units of CT REIT and related transactions, and the factors discussed under "Risk Factors" in the preliminary prospectus of CT REIT dated September 10, 2013. Neither Canadian Tire nor CT REIT undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

SOURCE: Canadian Tire Corporation, Limited

Media: Rob Nicol, 416-480-8414, [email protected]
Investors: Andrea Orzech, 416-480-3195, [email protected]