TORONTO, May 31, 2016 /CNW/ - Canadian Tire Corporation, Limited ("CTC") announces today that since the initial public offering of CT Real Estate Investment Trust (the "REIT") on October 23, 2013 (the "IPO"), it has acquired an additional 2.03% interest in the REIT.

On May 31, 2016, CT REIT Limited Partnership (the "Partnership"), a subsidiary of the REIT, redeemed 200,000 series 2 class C limited partnership units ("Series 2 Class C Units") of the Partnership, being all of the Series 2 Class C Units, all of which are held by Canadian Tire Holdings IV Limited Partnership ("Holdings IV"), a subsidiary of CTC, for an aggregate redemption price of $200,000,000 (the "Transaction"). The Series 2 Class C Units were issued at the time of the IPO and were redeemed in accordance with their terms. The Partnership satisfied the redemption of the Series 2 Class C Units through the issuance to Holdings IV of 13,335,111 class B limited partnership units of the Partnership (the "Class B Units") and the equivalent number of special voting units of the REIT (the "Special Voting Units"), valued at $14.998 per Class B Unit, which is based on the twenty-day volume weighted average price of units of the REIT ("Units") on the Toronto Stock Exchange.  

As a result of the Transaction, CTC increased its ownership in the aggregate issued and outstanding Class B Units and Units by approximately 1.02%, on a fully diluted basis, and now holds an effective interest in the REIT of approximately 85.16%. Following closing of the IPO, CTC, through certain of its subsidiaries, held a 83.13% effective interest in the REIT.

Prior to the completion of the Transaction, CTC, through certain of its subsidiaries, was the beneficial owner of: (a) 59,711,094 Units; and (b) 103,032,586 Class B Units and the equivalent number of Special Voting Units. Following completion of the Transaction, CTC, through certain of its subsidiaries, is the beneficial owner of: (a) 59,711,094 Units; and (b) 116,367,697 Class B Units and the equivalent number of Special Voting Units.

The purpose of the acquisition of the Class B Units and Special Voting Units was to satisfy the redemption price for the Series 2 Class C Units. CTC and its affiliates may from time to time acquire additional securities, or dispose of securities, of the REIT and entities controlled by the REIT (whether in connection with property acquisition transactions or otherwise).

In connection with this news release, an early warning report must be filed by CTC in accordance with applicable securities laws. A copy of the early warning report will be available for review on www.sedar.com.

About Canadian Tire Corporation

Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC," is a family of businesses that includes a retail segment, a financial services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal categories. PartSource and Gas+ are key parts of the Canadian Tire network. The retail segment also includes Mark's, a leading source for casual and industrial wear, and FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere), which offers the best active wear brands. The 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across the Company. For more information, visit Corp.CanadianTire.ca.

SOURCE CANADIAN TIRE CORPORATION, LIMITED