09/10/2013 04:11 EDT | Updated 11/10/2013 05:12 EST

Canadian Tire files prospectus for initial public offering of its REIT

TORONTO - Canadian Tire Corp. (TSX:CTC) says it aims to raise $263.5 million in the initial public offering of its planned real estate investment trust.

CT Real Estate Investment Trust says in its prospectus that it will offer 26.4 million shares priced at $10 apiece in the offering.

Canadian Tire announced plans to create the $3.5-billion real estate investment trust earlier this year to help unlock the value of its property holdings.

The proposed new REIT will acquire a majority of the company's real estate, including 255 retail properties and one distribution centre.

That represents a total of 19 million square feet, or 72 per cent of the real estate that Canadian Tire currently owns.

The retailer is expected to retain a significant ownership interest of 80 to 90 per cent of the REIT.

Canadian Tire has over 1,700 retail and gasoline outlets across the country including Canadian Tire stores as well as Mark's and various banners under FGL sports, including Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere.