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TORONTO, Sept. 19, 2019 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the “REIT”) announced today that it has completed the previously-announced $36.5 million acquisition of the newly constructed Audi Queensway dealership property in Toronto from the Dilawri Group (“Dilawri”). Under terms of the acquisition agreement, the REIT paid Dilawri $31.5 million of the total purchase price on closing and will receive monthly lease payments from Dilawri reflecting this purchase price deferral. The remaining $5.0 million of the purchase price is anticipated to be paid by the end of the fourth quarter of 2019, upon completion by Dilawri of certain post-closing obligations. At that time, the REIT will start receiving full monthly lease payments from Dilawri pursuant to the 18-year triple-net lease entered into today, which includes contractual 1.5% annual rent increases after the first year of the term.
Audi Queensway is a 65,547 square foot newly constructed automotive dealership located on 2.5 acres of land along an attractive commercial corridor in Toronto, adjacent to the intersection of Highway 427 and the Gardiner Expressway, two of Toronto’s busiest freeways.
The REIT funded the initial $31.5 million payment with proceeds from its June 2019 equity offering and draws from existing credit facilities. The deferred $5.0 million payment will be funded from draws on the REIT’s existing 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 61 income-producing commercial properties, representing more than two million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and QuÃ©bec. 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 “anticipated”. Forward-looking information includes the anticipated time of completion by Dilawri of certain post-closing obligations and the method of funding the deferred purchase price. 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 MD&A for the year ended December 31, 2018 and in the REIT’s annual information form dated March 21, 2019, 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
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