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TORONTO, Dec. 21, 2022 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (“Automotive Properties REIT” or the “REIT”) announced today that it has entered into multiple agreements (the “Acquisitions”) to purchase six automotive dealership properties in Quebec (the “Properties”) from separate third parties for an aggregate purchase price of approximately $98.5 million.
The Properties comprise a total of 187,421 square feet of gross leasable area located on approximately 21.7 acres of land. Four of the Properties are in Laval and St. Eustache in the Greater Montreal Area, and two are in Sorel-Tracy, northeast of Montreal.
“These transactions will significantly increase our footprint in Laval and other attractive urban markets in Quebec, while also enhancing our tenant diversification,” said Milton Lamb, President and CEO of the REIT.
On closing of the Acquisitions, the operating tenants will enter into long-term, triple-net leases with the REIT that include a contractual annual rent increase based on the Quebec Consumer Price Index, and no less than 1.5%, after year one of the lease term. The leases will have a weighted average term of approximately 16 years.
|GLA of dealership
|2385 Chomedey Blvd., Laval
|332 Rue Dubois., St-Eustache
|4555 Av. de la Renaissance, Laval
|1864 Boul. Fiset., Sorel-Tracy
|1918 Boul. Fiset., Sorel-Tracy
|2200 Chomedey Blvd., Laval
In conjunction with the Acquisitions, the REIT has reached an agreement to increase the amount available under the non-revolving component of one of its credit facilities by $70 million.
The REIT will fund the purchase price of the Acquisitions through the increase to one of its credit facilities as described above, draws on its revolving credit facilities and cash on hand, which includes $18.0 million from the recently completed sale of the Kingston Toyota and Lexus of Kingston automotive dealership properties.
The REIT has completed its due diligence in connection with the Acquisitions and expects to close the Acquisitions in January 2023, subject to customary closing conditions.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT’s portfolio currently consists of 70 income-producing commercial properties, representing approximately 2.6 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events and in some cases can be identified by such terms as “will” and “expects”. Forward-looking information includes statements regarding the timing of closing of the Acquisitions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risks & Uncertainties, Critical Judgements & Estimates” in the REIT’s most recent MD&A and in the REIT’s annual information form dated March 22, 2022, both of which are available on SEDAR (www.sedar.com). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust