Sale to RioCan nets proceeds of $40 million

    TORONTO, July 29 /CNW/ - Canadian Tire Corporation, Limited (CTC.a, CTC)
today announced the sale and leaseback of its Carling Avenue property in
Ottawa to RioCan Real Estate Investment Trust for proceeds of $40 million. The
property was sold for the equivalent of development costs and yielded no
significant gain.
    Located at 1660 Carling Avenue, this prime two-story Ottawa site features
a unique, customized urban format Canadian Tire Store as well as ancillary
ground-level retail.
    "The Carling transaction makes it economically feasible for us to open a
store in a highly attractive urban location enabling us to better serve our
customers living in this high density area and demonstrates our ability to
create financial flexibility through our real estate portfolio," said Tom
Gauld, president and CEO, Canadian Tire.

    Canadian Tire Corporation, Limited (TSX: CTC.a, CTC), operates more than
1,170 general merchandise and apparel retail stores and gas stations in an
inter-related network of businesses engaged in retail, financial services and
petroleum. Canadian Tire Retail, Canada's most shopped general merchandise
retailer, with 473 stores operated by dealers across Canada offers a unique
mix of products and services through three specialty categories in which the
organization is the market leader - Automotive, Sports and Leisure, and Home
Products. www.canadiantire.ca offers Canadians the opportunity to shop online.
PartSource is an automotive parts specialty chain with 75 stores designed to
meet the needs of purchasers of automotive parts - professional automotive
installers and serious do-it-yourselfers. Canadian Tire Petroleum is one of
the country's largest and most productive independent retailers of gasoline,
operating 267 gas bars, 259 convenience stores and kiosks, and 74 car washes.
Mark's Work Wearhouse is one of the country's leading apparel retailers
operating 364 stores in Canada. Under the Clothes that Work™ marketing
strategy, Mark's sells apparel and footwear in work, work-related, casual and
active-wear categories, as well as health-care and business-to-business
apparel. www.marks.com offers Canadians the opportunity to shop for Mark's
products online. Canadian Tire Financial Services has issued over 5 million
Canadian Tire MasterCards and also markets related financial products and
services for retail and petroleum customers. Canadians can also access
Financial Services online at www.ctfs.com. Over 57,000 Canadians work across
Canadian Tire's organization from coast-to-coast in the enterprise's retail,
financial services, and petroleum businesses.