Dilawri completes historic IPO

shutterstock_142550707Dilawri Group of Companies, one of the largest automotive retailers in Canada, has completed the initial public offering of its REIT designed to accelerate the company’s growth.

This REIT is the first publicly-traded one of its kind in the Canadian auto industry and it enables Dilawri, which owns 57 franchised automotive dealerships in five provinces, to acquire additional income-producing properties in Canada.

After raising a gross proceeds of $75-million, the Automotive Properties Real Estate Investment Trust units are now trading on the Toronto Stock Exchange (TSX) under the symbol APR.UN.

In connection with the closing, the REIT used the proceeds of the offering, together with drawdowns under the REIT’s credit facilities, to indirectly acquire through Automotive Properties Limited Partnership from subsidiaries of Dilawri or entities related to it 26 income-producing commercial properties. This was a total purchase price of approximately $354.2-million.

On closing, Dilawri along with its subsidiary 2243718 Ontario Inc., indirectly owns, controls or directs an approximate 57 per cent effective interest in the REIT. Dilawri also said, in a statement, it has advised the REIT that it intends to retain a significant interest in it for the foreseeable future.

Dilawri has also entered into a number of agreements with the REIT related to underwriting, voting trust, an escrow agreement and an exchange agreement, all of which are detailed in the REIT’s final long-form prospectus dated July 10, 2015.

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