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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.
The Properties
Address
|
GLA of
dealership
(sq. ft.)
|
Acreage
|
2385 Chomedey
Blvd., Laval
|
44,265
|
3.8
|
332 Rue
Dubois., St-Eustache
|
61,186
|
5.9
|
4555 Av. de la
Renaissance, Laval
|
24,782
|
2.5
|
1864 Boul.
Fiset., Sorel-Tracy
|
16,820
|
4.1
|
1918 Boul.
Fiset., Sorel-Tracy
|
14,276
|
1.5
|
2200 Chomedey
Blvd., Laval
|
26,092
|
3.9
|
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.
Forward-Looking
Information
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