Automotive Properties Real Estate Investment Trust said it has entered into an agreement with an unrelated party to purchase the automotive dealership property where Automobiles Niquet Audi and Automobiles Niquet Volkswagen call home.
The land, 4.3 acres on Boulevard Sir Wilfred Laurier in St. Bruno, Que., sold for $14.3 million.
The addition of this property is expected to be immediately accretive to the REIT’s adjusted funds from operations on a per unit basis.
“This property represents our second acquisition in Montreal and further diversifies our automotive brand representation in Canada’s second largest urban market,” said Milton Lamb, president and CEO of Automotive Properties REIT.
The property will have an 18-year, triple-net lease with an annual 1.5 per cent fixed rent escalator.
The Volkswagen dealership was built in 1987 and the Audi dealership was built in 2003. Both buildings underwent major renovations in 2014 and 2015, and have a combined total gross leasable area of 62,705 square feet.
Upon closing of the acquisition, the Dilawri Group, will enter into an 18-year lease with the REIT and will be the operating tenant of the Audi and Volkswagen dealerships on the property.