Mr. Milton Lamb reports
AUTOMOTIVE PROPERTIES REIT TO ACQUIRE BRIMELL TOYOTA DEALERSHIP PROPERTY IN TORONTO FOR $26.0 MILLION
Automotive Properties Real Estate Investment Trust has entered into an agreement to purchase the Brimell Toyota automotive dealership property in Scarborough, Ont., in the eastern part of Toronto, from a third party, for a purchase price of approximately $26.0-million. Concurrent with the REIT's acquisition of the property, Drive Autogroup will acquire the Brimell Toyota dealership operating business and will become a tenant of the REIT.
"We look forward to adding one of the premier Toyota dealership properties in Toronto to our portfolio and welcoming Drive Autogroup as a new tenant," said Milton Lamb, president and chief executive officer of Automotive Properties REIT.
The property includes a full-service Toyota dealership built in 2002, a collision centre and a car wash, representing a total gross leasable area of 55,600 square feet. It is located on approximately four acres at 5060 Sheppard Ave. East, just west of Markham Road, a busy commercial corridor with other automotive dealerships nearby and with convenient access to Highway 401.
Upon closing of the acquisition, Drive Autogroup will be the operating tenant and will enter into a 15-year, triple-net lease with the REIT. The lease includes contractual rent increases after the third year of the lease term that will be based on the Ontario Consumer Price Index. The lease obligations will be indemnified by a group of Drive Autogroup companies.
The REIT intends to satisfy the purchase price through its existing revolving credit facilities. The REIT has completed its due diligence in connection with this acquisition and expects to close the transaction on Nov. 30, 2018, subject to customary closing conditions.
About Automotive Properties Real Estate Investment Trust
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 42 income-producing commercial properties, representing approximately 1.7 million square feet of gross leasable area, and one development property, in metropolitan markets across Ontario, Saskatchewan, Alberta, British Columbia and Quebec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties.
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