EDMONTON, Sept. 4 /CNW/ - AutoCanada Income Fund ("AutoCanada" or the
"Fund") (TSX: ACQ.UN), Canada's only publicly traded franchised automobile
dealership business, announced today that the Nissan dealership Open Point
located in Prince George, British Columbia commenced operations on August 31,
2007. The Fund has arranged to finance the opening of this Nissan dealership
Open Point, and to provide it with management services.
On July 13, 2007, AutoCanada announced that the dealership, operating as
"Northland Nissan", was expected to open for operations in late September 2007
in a temporary facility with a two vehicle showroom and four service bays. The
dealership is anticipated to be relocated to a new facility in the 4th quarter
of 2008 which shall be designed to Nissan Canada image standards and shall
provide for an eight vehicle showroom and ten service bays. The dealership
shall be owned and operated by an affiliate of Canada One Auto Group Ltd.,
which owns 46% of the Fund on a fully diluted basis.
The new dealership marks an expansion of the Fund's managed dealership
operations, thereby capturing incremental distributable cash flow generated by
an automobile dealership that is not owned directly by the Fund. These
relationships are intended to provide AutoCanada with the financial benefits
associated with an expanded network of dealerships while accommodating the
requirements of various automobile manufacturers.
To facilitate the transaction, AutoCanada obtained Board approval to
grant consents to Canada One and its affiliate under the terms of the
non-competition agreements entered into at the time of the Fund's IPO.
"We are very pleased that we are able to open this dealership almost a
month earlier than we anticipated in July. The Nissan franchise is an
important addition to our Prince George platform of dealerships which
currently includes the Chrysler, Jeep, Dodge, and Hyundai brands," said
Patrick Priestner, AutoCanada's Chief Executive Officer.
AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation or management of franchised automobile
dealerships. Through its 54% interest in AutoCanada LP, it operates or manages
19 franchised automobile dealerships in six provinces and has over
940 employees. It currently sells various new vehicle brands, including
Chrysler, Dodge, Jeep(R), Hyundai, Mitsubishi, Subaru, and, through two
managed dealerships, Nissan. In 2006, its owned franchised automobile
dealerships sold approximately 19,350 vehicles and processed approximately
215,000 service and collision repair orders in 245 service bays, generating
revenue of approximately $694 million.
About Canada One Auto Group Ltd.
Canada One Auto Group Ltd. is a private company controlled by Patrick
Priestner. On May 11, 2006 AutoCanada Income Fund acquired the business assets
of Canada One Auto Group Ltd as disclosed in its prospectus that was filed on
May 3, 2006. Canada One holds a 46% interest in the Fund on a fully diluted
Additional information about AutoCanada Income Fund is available at
www.sedar.com and the Fund's website at www.autocan.ca.
For further information:
For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, AutoCanada Income Fund, Phone: (780) 732-3139, Email: