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TORONTO, Sept. 28, 2018 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the "REIT") announced today that is has completed the previously-announced acquisition of two automotive dealership properties from AutoCanada Inc. (TSX: ACQ) ("AutoCanada") for a total purchase price of approximately $55.5 million (the "Transaction").
The two dealership properties included in the Transaction are the BMW Laval automotive dealership property located in Laval, Québec, part of the Montreal metropolitan area, and the Sherwood Park Volkswagen automotive dealership property located in Sherwood Park, Alberta, part of the Edmonton metropolitan area.
The REIT has initially funded the Transaction through draws on one of its existing revolving credit facilities and draws on an expanded revolving credit facility that was put in place in conjunction with the Transaction.
The REIT intends to use the net proceeds from the bought deal equity offering (the "Offering"), announced concurrently with the Transaction, to repay the debt incurred to fund the Transaction and for general trust purposes. Closing of the Offering is expected to occur on or about October 16, 2018, and is subject to customary conditions, including approval of the Toronto Stock Exchange.
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.
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", "intends", "anticipates" and "expected". Forward-looking information includes statements regarding the Transaction and Offering. 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 Transaction on the terms described, or at all, the failure of the Transaction to be accretive to the REIT's AFFO, the failure of the REIT to close the Offering and the factors discussed under "Risks and Uncertainties" in the REIT's management's discussion and analysis ("MD&A") most recently filed on SEDAR (www.sedar.com) and in the REIT's current annual information form, which is available on SEDAR. 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 as of the date of this news release.
SOURCE Automotive Properties Real Estate Investment Trust
For further information: please contact: 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