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TORONTO, Dec. 16, 2019 /CNW/ – Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (“Automotive Properties REIT” or the “REIT”) announced today that it has completed the previously-announced acquisition of the Straightline Kia automotive dealership property (the “Property”) located in Calgary, Alberta, from an affiliate of the JV Driver Group (“JV Driver”), for a purchase price of approximately $8.4 million.
Concurrent with the REIT’s acquisition of the Property, Straightline Motor Group, an affiliate of JV Driver, is now the operating tenant of the Property and has entered into a 15-year, triple-net lease with the REIT that includes two five-year renewal options at market rates. Contractual annual rent increases after the first year of the lease will track Alberta’s Consumer Price Index. The lease obligations are indemnified by JV Driver Investments Inc., an affiliate JV Driver.
The Property includes a 21,808 square foot full-service Kia dealership situated on 1.96 acres of land in the Calgary Auto Mall, which is located near the intersection of Deerfoot Trail and Glenmore Trail, two of Calgary’s major highways.
The REIT funded the purchase price for the Property acquisition through draws on its revolving credit facilities, which the REIT expects to repay with a portion of the proceeds from the REIT’s bought deal equity offering expected to close on or about December 23, 2019.
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 62 income-producing commercial properties, representing more than 2.3 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.
SOURCE Automotive Properties Real Estate Investment Trust
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