Canadian Tire Corp. Ltd. has sold its Carling Avenue property to RioCan Real Estate Investment Trust on a leaseback basis, for $40 million.

"The Carling transaction makes it economically feasible for us to open a store in a highly attractive urban location, enabling us to better serve our customers living in this high-density area, and demonstrates our ability to create financial flexibility through our real estate portfolio," said Canadian Tire CEO Tom Gauld in a statement.

The hardware retail chain said the sale of the 1660 Carling Ave. site yielded no significant gain for the company as it was sold for the equivalent of development costs.