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TORONTO, Nov. 30, 2018 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced that it has completed the previously-announced acquisition of the Brimell Toyota automotive dealership property (the "Property") in Scarborough, Ontario for a purchase price of approximately $26.0 million.
Concurrent with the REIT's acquisition of the Property, Drive Autogroup acquired the Brimell Toyota dealership operating business and has now entered 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 are indemnified by a group of Drive Autogroup companies.
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. The REIT funded the purchase price through its existing revolving credit facilities.
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 43 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 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
For further information: 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