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-- The REIT also announces completion of facility improvements to its
Dixie Auto Mall and Meadowvale Honda dealership properties --
TORONTO, Feb. 5, 2020 /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 BMW automotive dealership property located in Regina, Saskatchewan ("Regina BMW"), from the Dilawri Group ("Dilawri") for a purchase price of approximately $11.35 million.
Regina BMW, located at 1001 Broad Street in Regina, Saskatchewan, includes a new 19,619 square-foot newly-built full-service BMW automotive dealership facility, located on 3.04 acres of land. Currently, 1.46 acres of land is being used by the BMW dealership, with an additional 1.58 acres of land available for future development potential.
The REIT also announced today that the previously-announced $7.0 million in aggregate capital commitments that the REIT provided to the operating tenants of its 401 Dixie Auto Mall dealership property in Mississauga, Ontario, and its Meadowvale Honda dealership property in Mississauga, Ontario, have been deployed by the operating tenants for dealership facility improvements. As a result of these facility improvements, the respective annual rental rates for these properties has increased accordingly, effective mid-December 2019.
The REIT funded the purchase price for the acquisition of Regina BMW and the capital commitments described above with proceeds from its public offering of trust units completed on December 23, 2019 (the "December 2019 Offering").
Regina BMW is one of two automotive dealership properties that the REIT had previously announced it had agreed in principle to acquire from Dilawri in conjunction with the December 2019 Offering; the other being the Acura dealership property located in North Vancouver, British Columbia, that the REIT expects to complete by mid-February 2020.
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 63 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 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 statements regarding certain property acquisitions, including the timing of closing of the acquisitions of one or more properties, statements regarding the REIT's future acquisitions, and certain capital investments. 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 an acquisition on the terms described, or at all, and 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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