Automotive Properties Real Estate Investment Trust, owned by the Dilawri Group of Companies, has made moves to purchase a number of dealership properties.
The REIT recently closed its first acquisition of Toyota Woodland, a 50,000 sq. ft. dealership in Montreal, Que. for approximately $7.2-million, and has now announced a second deal to acquire a Go Auto dealership property in Edmonton, Alta. for approximately $23-million.
This would be the 44,800 sq.ft. land underlying the Porsche Centre and Jaguar Land Rover Edmonton, making it the company’s first acquisition in the city of Edmonton.
“This is an important milestone for us, as the transaction represents the REIT’s first acquisition of a dealership property with a third party dealer as tenants, and adds Land Rover Jaguar as a new brand in our portfolio,” said Milton Lamb, President and CEO of Automotive Properties REIT, in a written release.
“By selling the real estate underlying these dealerships, we are capitalizing on a unique opportunity to monetize value and redeploy the funds in our core business — the ownership and operation of leading automotive business,” said Jared Preistner, President of Go Auto, which which operates 40 auto dealerships in Alberta, British Columbia and the Northwest Territories.
This likely won’t be the company’s last acquisition. In another recent announcement, Lamb said Automotive Properties REIT will continue to focus on building the REIT’s third party acquisition opportunities.
“We are targeting prime automotive dealership properties in urban markets across Canada that can further enhance our brand and geographic diversification and grow cash available for distribution to our unitholders,” said Lamb.
The REIT’s current portfolio includes 27 income producing properties in Ontario, Saskatchewan, Alberta, British Columbia and Quebec.
