The Automotive Properties Real Estate Investment Trust, also known as the REIT, is looking to purchase two automotive dealerships in Quebec for a combined $23.4 million.
The company entered into agreements with a dealership group to buy the stores, which are Sherbrooke Honda and Magog Honda.
“The acquisition of the Sherbrooke Honda and Magog Honda properties will increase our footprint in Quebec and expand our relationships with leading dealership groups,” said Milton Lamb, President and CEO of the REIT.
Sherbrooke Honda includes a 26,990 square-foot, full-service Honda dealership facility that was renovated in 2014 and is situated on 1.7 acres of land.
The Magog Honda property consists of two buildings totaling 56,195 square-feet and is situated on 6.5 acres of land. It includes a service Honda dealership facility that was built in 2006, with expansions completed in 2009 and 2011. And a used car and service facility that was built in 2008.
The REIT also entered into an agreement to buy approximately 2.15 acres of land in Langley, British Columbia from a third party. It is subject to a land lease paid by the operator of the Acura Langley dealership—which is an affiliate of the Dilawri Group, and also an existing tenant of the REIT. The purchase price for the Acura Langley land and lease acquisition was approximately $15.1 million.
“The transaction involving Acura Langley enables us to consolidate ownership of the land and building and the related leases, thereby further enhancing the value of our property portfolio in the Greater Vancouver Area,” said Lamb.
The company expects to close the acquisitions in January 2022.
