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TORONTO, June 2, 2023 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (“Automotive Properties REIT” or the “REIT”) announced today that it has entered into a 50/50 joint venture (the “Joint Venture”) with StorageVault Canada Inc. (TSX: SVI) (“StorageVault”) to acquire an automotive dealership property located at 9425 Taschereau Boulevard in Brossard, Quebec (the “Brossard Property”) from a third-party vendor. StorageVault currently owns a self-storage property that is adjacent to the Brossard Property. The acquisition of the Brossard Property has closed.
Under the terms of the Joint Venture, Automotive Properties REIT and StorageVault each funded 50% of the $16.1 million purchase price, which included related expenditures.
The Brossard Property consists of a 50,415 square-foot, full-service automotive dealership facility situated on approximately 3.4 acres of land and is currently under triple-net leases with Groupe Park Avenue Volvo and Jaguar Land Rover. The leases are subject to annual adjustments linked to the consumer price index in Quebec.
The Brossard Property will be managed by the REIT for so long as it is used for automotive purposes for customary management fees. The Joint Venture expects to consider the highest value and best use for the Brossard Property over the long term to maximize value, including automotive, self-storage, or other uses.
Automotive Properties REIT is an internally managed, 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 77 income-producing commercial properties, representing approximately 2.8 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.
StorageVault owns and operates 239 storage locations across Canada. StorageVault owns 208 of these locations plus over 4,500 portable storage units representing over 11.5 million rentable square feet on 670 acres of land. StorageVault also provides last mile storage and logistics solutions and professional records management services, such as document and media storage, imaging and shredding services. For more information, please visit: www.storagevaultcanada.com.
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 “expected”. Forward-looking information includes the management of the Brossard Property and the Joint Venture’s expected consideration of the use of the Brossard Property. 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 in the REIT’s regulatory filings that can be found 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