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TORONTO, Oct. 23, 2013 /CNW/ - Canadian Tire Corporation, Limited ("Canadian Tire" or the "Company") (TSX: CTC) (TSX: CTC.a) announced today that CT Real Estate Investment Trust ("CT REIT") (TSX: CRT.UN) has completed a $263.5 million initial public offering of trust units (the "Units"). In connection with the closing of the initial public offering, Canadian Tire sold a portfolio of 256 properties (the "Portfolio of Properties") indirectly to CT REIT for a total purchase price of approximately $3.5 billion.

At closing, Canadian Tire holds an approximate 85.0% effective interest in CT REIT (and will hold an approximate 83.1% effective interest if the over-allotment is exercised in full) on a fully diluted basis through ownership of 59,711,094 Units and all of the Class B limited partnership units of CT REIT Limited Partnership (the "Partnership"), which are economically equivalent to and exchangeable for Units. In addition, Canadian Tire holds all of the outstanding Class C limited partnership units of the Partnership.

The Offering was underwritten by a syndicate of investment banks with RBC Capital Markets and CIBC acting as joint bookrunners. CT REIT has granted the underwriters an over-allotment option, exercisable at any one time up to 30 days following the closing, to purchase up to an additional 3,952,500 Units, which if exercised in full, would increase the total gross proceeds of the Offering to approximately $303 million. The net proceeds of the over-allotment option would be used by CT REIT for future acquisitions, investments in properties and for general trust purposes.

"Real estate has always played an integral role in Canadian Tire's strategy and success and CT REIT will provide a new opportunity for continuing our investment in this core asset," said Stephen Wetmore, President and CEO, Canadian Tire Corporation. "Canadian Tire is fully committed to the success of CT REIT and we look forward to being the majority unit holder for a very long time."

The Portfolio of Properties represents approximately 19 million square feet of gross leasable area, comprised of 255 retail properties and one distribution centre.  The Portfolio of Properties represented approximately 72% of Canadian Tire's owned real estate square footage. Canadian Tire's remaining commercial properties comprise an aggregate of approximately seven million square feet of gross leasable area.  Canadian Tire has advised CT REIT that it anticipates that approximately three quarters of its remaining owned properties will ultimately be suitable to be offered to CT REIT at some time in the future, with approximately a quarter likely being suitable to be offered to CT REIT over the next five years.

Canadian Tire will be CT REIT's most significant tenant for the foreseeable future.  At closing, the Canadian Tire retail properties and Canadian Tire distribution centre represented approximately 95.7% of CT REIT's annual base minimum rent and 97.4% of CT REIT's annual base minimum rent if all CTC banner stores are included.

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, CT REIT 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 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 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, changes in economic and market conditions, and other risks and uncertainties discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including the "Risk Factors" section of our Annual Information From for fiscal 2012 and our 2012 Management Discussion and Analysis and under "Risk Factors" in the final prospectus of CT REIT dated October 10, 2013. Canadian Tire does not 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