Locations
Automotive Properties REIT (APR-UN-T) is ending 2022 with its largest acquisitions of the year, announcing agreements to purchase six automotive dealership properties in Quebec for $98.5 million.
The Toronto-based REIT said the acquisitions involve multiple agreements from separate third parties. It has completed due diligence and expects the transactions to close in early 2023, subject to customary closing conditions.
"These transactions will significantly increase our footprint in Laval and other attractive urban markets in Quebec while also enhancing our tenant diversification," said Milton Lamb, president and CEO of the REIT, in the announcement.
The properties comprise a total of 187,421 square feet of gross leasable area located on approximately 21.7 acres of land. Three of the properties are in Laval and one in St-Eustache in the Greater Montreal area, and two are in Sorel-Tracy northeast of the city.
On closing, the tenants operating the dealerships will enter into long-term, triple-net leases with the REIT that include a contractual annual rent increase based on the Quebec Consumer Price Index – and no less than 1.5 per cent – after Year 1 of the lease term.
The leases will have a weighted average term of approximately 16 years.
The acquisition properties
| Address | GLA of dealership (sq. ft.) | Acreage |
| 2385 Chomedey Blvd., Laval | 44,265 | 3.8 |
| 332 Rue Dubois., St-Eustache | 61,186 | 5.9 |
| 4555 Ave. de la Renaissance, Laval | 24,782 | 2.5 |
| 1864 Blvd. Fiset., Sorel-Tracy | 16,820 | 4.1 |
| 1918 Blvd. Fiset., Sorel-Tracy | 14,276 | 1.5 |
| 2200 Chomedey Blvd., Laval | 26,092 | 3.9 |
AP REIT has also increased the amount available under the non-revolving component of one of its credit facilities by $70 million.
It plans to fund the purchases through the credit facility increase, draws on its other revolving credit facilities and cash on hand, which includes $18 million from the recent sale of its Kingston Toyota and Lexus of Kingston properties.
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.
Its portfolio consists of 70 income-producing commercial properties, representing approximately 2.6 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec.
That is up from 66 properties and approximately 2.5 million square feet a year ago (as of the end of Q3 2021).
Industry Events
Locations
