CT REIT has announced that it is issuing $200 million in Series J senior unsecured debentures on a private-placement basis across Canada.

The REIT serves as Canadian Tire’s real estate investment and development arm. owning about 375 commercial properties across Canada. The assets are primarily net lease, single-tenant retail locations. Canadian Tire is the REIT’s principal tenant and controlling unitholder.

The five-year debentures carry a coupon of about 4.3% and are set to mature on June 9, 2030.

Proceeds from the offering will be used to repay existing debt. The issuance is being led by CIBC Capital Markets, BMO Capital Markets, and RBC Capital Markets, with closing anticipated around June 9, 2025, pending customary conditions.

The debentures are expected to receive a BBB rating with a stable trend from Morningstar DBRS and will represent direct senior unsecured obligations of CT REIT.

Canadian Tire has agreed to purchase the Hudson’s Bay Company’s intellectual property for $30-million. The hardware retailer has also bid on some of the iconic department-store chain’s store leases as the Bay navigates through the creditor-protection process.

It appears possible that CT REIT would be involved in managing the Bay leases if Canadian Tire succeeds in acquiring some. It is not known whether Canadian Tire bid on the leases directly or through the REIT.

Photo: CNW Group/CT REIT

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