Brick Brewing has signed a deal to sell its King Street property in Waterloo, Canada, to HIP Developments for $4m.

The sale is a part of the company’s strategy to consolidate its operations and boost its manufacturing competitiveness.

Brick Brewing said: "The buyer, HIP Developments, is expected to pursue re-development of the site, located in the thriving King Street corridor in Uptown Waterloo."

The transaction is likely to be completed in the third quarter.

Following the completion of the deal, Brick will lease the property, while expanding its Bingemans Centre Drive location in Kitchener.

Brick Brewing president and CEO George Croft said: "For the Company and our shareholders, this transaction will enable expansion of operations at our Kitchener location and begin the consolidation our operating facilities.

"The Kitchener expansion represents a major investment by the Company and will allow Brick to realize continued improvement in our operating efficiencies."

HIP Developments vice president Scott Higgins said: "The Brick property on King Street is surrounded by urban amenities and is really the heart of the LRT corridor having multiple stations surrounding it.

"We have ambitious plans for what will be a landmark and award winning multi-use redevelopment project."

HIP Developments plans to retain certain portions of the original building.