2111 Steeles Avenue East Brampton | ? | ? | ? | ?

[AHK]

Former Canadian Tire Brampton Steeles East warehouse site, 90 Acres, short distance from the Bramalea Go Station, has been sold for $258 Million, proceeds which realize a capital gain of $240 Million for Canadian Tire! Purchaser was not identified. From the news releases:

Canadian Tire Corporation to sell Brampton industrial property for $258 million​

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TORONTO, Nov. 15, 2024 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) (CTC or the Company) today announced an agreement to sell a 90-acre industrial property in the Greater Toronto Area for total proceeds of $258 million. This follows a North American-wide competitive bid process initiated in the first quarter of 2024.

The property, located at the corner of Bramalea and Steeles in Brampton, Ontario, includes 1.5-million square feet of industrial real estate which is no longer needed for CTC's distribution centre requirements as a result of strategic supply chain investments and consolidation in recent years.

"Fifty years ago, this site was a first-of-its-kind in Canada and a fundamental building block for our supply chain," said Greg Hicks, President and CEO, Canadian Tire Corporation. "In that same spirit, we have been investing and evolving, introducing modern and sophisticated facilities in the region, which are key to our supply chain of the future."

"Our need for the site has decreased significantly in recent years. This transaction offers a clear example of our ability to surface shareholder value from surplus real estate assets."

CTC's real estate portfolio remains a core asset and a source of potential value through the sale, entitlement or redevelopment of redundant properties. This transaction follows the sales of retail properties in Chilliwack, B.C. and the Greater Toronto Area, as disclosed with the Company's Q2 2024 and Q3 2024 results.

The transaction will result in a pre-tax gain of approximately $240 million on closing and will be treated as a normalizing item. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

Proceeds will be used to reduce borrowings associated with the Company's October 2023 repurchase and consolidation of the Canadian Tire Financial Services business.


Overview of the site:

 

[paperguy]

could it potentially become TOD? or just be another warehouse/factory

 

[innsertnamehere]

at that price, likely mixed-use redevelopment.

 

[ben.thebean1]

could it potentially become TOD? or just be another warehouse/factory

at that price, likely mixed-use redevelopment.

Very hard to say, here's why:

And this is roughly how high a plane would be at that location:

 

[innsertnamehere]

That doesn't inherently prevent mixed-use development - just likely... short mixed-use development.

It does depend on the noise contours from the airport though, as at a certain level they don't really support residential uses. I'm not sure what that looks like here.

 

[ShonTron]

I’m surprised Canadian Tire held on to that warehouse for so many years after the Goreway and Bolton sites opened. It’s definitely not of modern design for logistics hubs.

There’s definitely potential for mixed use, but there are several caveats: the Pearson north-south runway noise contours are definitely one of them, but they are less of a problem than the east-west paths as they are mostly unused.

To the south of Highway 407 are some noxious industrial uses, including a waste incinerator. There is also noise buffers required for the CN Halton Sub. There are high rise residential and mixed use proposals north of Steeles, but most of that is north of Orenda Road/East Drive.

 

[tstormers]

I have some fond memories working in that building back right out of school surveying mechanical sensors/units. Walking in those 3 large buildings with all of the automated "trains" was pretty sweet as well as the view on the roof. Fun few weeks. (I'm sure I must have some photos on an old hard drive somewhere haha).

 

[Mariner35]

I’m surprised Canadian Tire held on to that warehouse for so many years after the Goreway and Bolton sites opened. It’s definitely not of modern design for logistics hubs.

There’s definitely potential for mixed use, but there are several caveats: the Pearson north-south runway noise contours are definitely one of them, but they are less of a problem than the east-west paths as they are mostly unused.

To the south of Highway 407 are some noxious industrial uses, including a waste incinerator. There is also noise buffers required for the CN Halton Sub. There are high rise residential and mixed use proposals north of Steeles, but most of that is north of Orenda Road/East Drive.

The pandemic pushed the need to hold on to it a little longer. It was essentially being used for excess storage. The Dispatch team for their Fleet also worked out of that building until last week when a new dispatch office finally opened at their Goreway site.

CT held on to it about 10 years longer than they initially intended.

Fun fact: They actually filmed a season of Top Chef Canada there recently.