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TORONTO, Oct. 1, 2024 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") announced today the completion of its previously announced sale of the automotive dealership property located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street, in Markham, Ontario (collectively, the "Kennedy Lands") to a member of the Dilawri Group for gross proceeds of $54 million. The REIT will use the net proceeds from the sale of the Kennedy Lands primarily to repay indebtedness under its existing revolving credit facilities, which will provide the REIT with additional acquisition capacity. In addition to the $54 million initial sale price, the REIT has the potential to benefit from the successful rezoning of the Kennedy Lands through the payment of additional cash consideration should the Kennedy Lands be successfully rezoned with density in excess of an agreed threshold, without incurring any of the risks related to the redevelopment of the Kennedy Lands.
Special Distribution
The REIT expects to declare a special distribution to holders of trust units of the REIT ("REIT Units") in December 2024 as a result of the increase in taxable income generated by the closing of the sale of the Kennedy Lands. The amount of the special distribution will be determined towards the end of 2024. The REIT expects that the special distribution to holders of REIT Units will be paid primarily by the issuance of REIT Units. Immediately following the special distribution, the outstanding REIT Units will be consolidated such that each holder of REIT Units will hold, after the consolidation, the same number of REIT Units as held immediately prior to the special distribution.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The REIT's portfolio currently consists of 76 income-producing commercial properties, representing approximately 2.8 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive dealership real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.