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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.
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 "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