Automotive Properties REIT Agrees to Acquire Two Dealership Properties and a Vehicle Service Compound Facility in Edmonton for a Combined Purchase Price of $23.2 million

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[{"type":"text","content":"\n\n\n\nAutomotive Properties REIT Agrees to Acquire Two Dealership Properties and a Vehicle Service Compound Facility in Edmonton for a Combined Purchase Price of $23.2 million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Nov. 22, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, Nov. 22, 2017 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the \"REIT\") today announced that it has entered into an agreement with a private third party (the \"Vendor\") to purchase a portfolio of three properties consisting of two automotive dealership properties and a vehicle service compound facility in Edmonton, Alberta: the Ericksen Infiniti dealership property, the Southtown Hyundai dealership property, and the Kentwood Ford vehicle service compound (the \"Properties\"). The combined purchase price for the Properties is approximately $23.2 million. The addition of the Properties to the REIT's portfolio is expected to be accretive to the REIT's Adjusted Funds from Operations (\"AFFO\") on a per unit basis.\n\nThe Properties have been leased by the Vendor to operating affiliates of Go Auto, one of Canada's largest owner/operators of automotive dealerships, since 2013. On closing, the REIT will assume the existing long-term triple-net leases on the Properties, each of which expires in June 2028 and include 10% rent escalations effective July 2018 and July 2023. The leases are indemnified by the parent company of Go Auto. \n\n\"This portfolio of properties will be a strong addition to the REIT and this transaction provides important strategic benefits. It expands our relationship with Go Auto, one of Canada's leading automotive retailers, which further diversifies our tenant base, it builds on our geographic diversification in major markets and the transaction is expected to be accretive to AFFO per unit,\" said Milton Lamb, President and CEO of Automotive Properties REIT.\n\nThe Ericksen Infiniti property includes a 25,550 square-foot...

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