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TORONTO, Oct. 1, 2024
/CNW/ - Automotive Properties Real Estate Investment Trust (TSX:
APR.UN) ("Automotive Properties REIT" or the "REIT") announced
today the completion of its previously announced sale of the
automotive dealership property located at 8210 and 8220 Kennedy
Road and 7 and 13/15 Main Street, in Markham, Ontario (collectively, the "Kennedy
Lands") to a member of the Dilawri Group for gross proceeds of
$54 million. The REIT will use the
net proceeds from the sale of the Kennedy Lands primarily to repay
indebtedness under its existing revolving credit facilities, which
will provide the REIT with additional acquisition capacity. In
addition to the $54 million initial
sale price, the REIT has the potential to benefit from the
successful rezoning of the Kennedy Lands through the payment of
additional cash consideration should the Kennedy Lands be
successfully rezoned with density in excess of an agreed threshold,
without incurring any of the risks related to the redevelopment of
the Kennedy Lands.
Special Distribution
The REIT expects to declare a special distribution to holders of
trust units of the REIT ("REIT Units") in December 2024 as a result of the increase in
taxable income generated by the closing of the sale of the Kennedy
Lands. The amount of the special distribution will be determined
towards the end of 2024. The REIT expects that the special
distribution to holders of REIT Units will be paid primarily by the
issuance of REIT Units. Immediately following the special
distribution, the outstanding REIT Units will be consolidated such
that each holder of REIT Units will hold, after the consolidation,
the same number of REIT Units as held immediately prior to the
special distribution.
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 76 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.
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", "should",
"anticipates", "could" and "expects". Forward-looking information
includes the use of proceeds from the sale of the Kennedy Lands,
additional acquisition capacity and the payment of a special
distribution. 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
Judgments & Estimates" in the REIT's Management's Discussion
& Analysis ("MD&A") for the three and six-month periods
ended June 30, 2024 and in the REIT's
annual information form dated March 7,
2024, which are available on SEDAR+ (www.sedarplus.ca) and
the REIT's website (www.automotivepropertiesreit.ca). 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