Automotive Properties REIT to Acquire Volkswagen Dealership Property in Calgary for $18.0 million

About this update from Automotive Properties Real Estate Investment Trust

[{"type":"text","content":"\n\n\n\nAutomotive Properties REIT to Acquire Volkswagen Dealership Property in Calgary for $18.0 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, June 11, 2018\n\n\n\n– The REIT also announces the funding of a $2.0 million dealership facility expansion at its Frost Chevrolet Buick GMC Cadillac dealership property –  \n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n\n\n\nTORONTO, June 11, 2018 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) (the \"REIT\") today announced that it has entered into an agreement to purchase the Country Hills Volkswagen dealership property in Calgary, Alberta (the \"Property\") for a purchase price of approximately $18.0 million. The addition of the Property is expected to be accretive to the REIT's Adjusted Funds from Operations (\"AFFO\")¹ on a per unit basis. \n\nThe Property includes a newly-built 34,646 square-foot, full-service Volkswagen dealership facility operated by a Dilawri Group (\"Dilawri\") company. The Property is located on approximately 4.7 acres at 11380 Stonehill Drive NE, just north of the Calgary International Airport, with convenient access from the Deerfoot Trail Highway and in close proximity to substantial commercial development. Upon closing of the acquisition, Country Hills Volkswagen will be the operating tenant and will enter into an 18-year, triple-net lease with the REIT. The lease includes a contractual 1.5% annual rent increase after year one and is indemnified by a Dilawri company.   \n\nAs part of the purchase consideration, the REIT will issue 480,522 trust units of the REIT(\"Units\") to Dilawri valued at approximately $5.0 million, based on a price of $10.4047 per Unit, which represents the volume-weighted average closing price of Units for the 20 trading days ended May 2, 2018. The REIT intends to satisfy the remaining $13.0 million of the purchase price from cash on hand and through draws on its credit facilities. The REIT's inde...

More updates from Automotive Properties Real Estate Investment Trust