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TORONTO, Nov, 29, 2018 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced that it has entered into an agreement to purchase the Brimell Toyota automotive dealership property (the "Property") in Scarborough Ontario, 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 CEO 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 Avenue 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 Friday, November 30, 2018, 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 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 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 "expected". Forward-looking information includes the REIT's future acquisition capacity. 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 failure to successfully close the Brimell Toyota acquisition on the terms described, or at all, and the factors discussed under "Risks and Uncertainties" in the REIT's most recently filed Management Discussion & Analysis and in the REIT's current annual information form, 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
View original content: http://www.newswire.ca/en/releases/archive/November2018/29/c4794.html
Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647-496-7856; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: (647) 789-2445; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: (647) 789-2446