Automotive Properties REIT Completes Acquisition of a Portfolio of Three Dealership Properties from AutoCanada

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[{"type":"text","content":"\n\n\n\nAutomotive Properties REIT Completes Acquisition of a Portfolio of Three Dealership Properties from AutoCanada\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, June 25, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n TORONTO, June 25, 2019 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the \"REIT\") announced today that it has completed the previously-announced acquisition of a portfolio of three automotive dealership properties from AutoCanada Inc. (TSX: ACQ) (\"AutoCanada\") for a total purchase price of approximately $30.4 million, excluding closing costs (the \"Transaction\"). \nThe three dealership properties included in the Transaction are: the Abbotsford Volkswagen property, located at 30150 / 30195 Automall Drive in Abbotsford, British Columbia; the Guelph Hyundai property, located at 765 Woodlawn Road West in Guelph, Ontario; and the Wellington Motors property, a Chrysler dealership located at 935 Woodlawn Road West in Guelph, Ontario.  Affiliates of AutoCanada are now the respective operating tenants of the Abbotsford Volkswagen, Guelph Hyundai and Wellington Motors dealerships, and each has entered into a 19-year, triple-net lease with the REIT. AutoCanada Holdings Inc. has provided an indemnity to the REIT in respect of the lease obligations for the three dealership properties included in the Transaction.\nThe REIT has initially funded the Transaction through draws on its existing revolving credit facilities and through the expansion of one of its non-revolving credit facilities (\"Credit Facility 2\") to approximately $102 million, representing an increase of $29.7 million. The REIT has entered into a $29.7 million interest rate swap for a 10-year term at an interest rate of 3.55%. Credit Facility 2's term has also been extended to June 2024.\nThe REIT intends to use a portion of the net proceeds from the REIT's previously-announced bought deal public offering of trust units of the REIT (the \"Offering\") t...

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