TORONTO — As Sears vacates its Calgary DC, Canadian Tire Corporation (CTC) will move in.
CT Real Estate Investment Trust has received from Sears Canada Inc. a notice to disclaim the Sears distribution centre lease in Calgary, Alberta, which CT REIT does not intend to oppose. It is expected that Sears will vacate the distribution centre on or before February 3, 2018.
The Sears Calgary distribution centre comprises two adjacent properties – a 625,000 square foot distribution centre located at 25 Dufferin Place SE and a 30,000 square foot building located at 5500 Dufferin Boulevard SE.
“CT REIT has entered into a 10-year lease with Canadian Tire Corporation for the building located at 25 Dufferin Place SE, as well as an additional six acres of land to be leased for trailer parking, commencing May 1, 2018,” said Ken Silver, president and CEO, CT REIT.
“This 625,000 square foot building, acquired in 2016, is strategically located, adjacent to CTC’s main distribution centre for Western Canada, and has direct access to the Canadian Pacific intermodal facility along with easy access to the Deerfoot Trail and Stoney Trail highways.”
CTC currently occupies and leases from CT REIT the 201,000 square foot building known as 11 Dufferin Place SE, which is next to 25 Dufferin Place SE. CTC will move its existing operations at 11 Dufferin Place SE to 25 Dufferin Place SE.
It was a condition of CTC entering into the new lease that the lease for 11 Dufferin Place SE be terminated. CT REIT expects there will be an interruption in cash flows at 11 Dufferin Place SE as a result of the termination.
Both 11 Dufferin Place SE and the 30,000 square foot building located at 5500 Dufferin Boulevard SE will be available for lease.
On December 22, 2017, CT REIT also acquired 5.5 acres of land located adjacent to 11 Dufferin Place SE for $4.2 million, completing the assembly of the block between 52 Avenue SE and the Canadian Pacific intermodal facility.