The Globe and Mail reported this week that Capital Automotive, a U.S.-based real estate firm that buys land and buildings of automobile dealerships, has re-entered the Canadian market.
The paper says the company bought real estate holdings from the Phaeton Automotive Group of London, Ont.
Phaeton president and CFO Mohan Janakiraman told the paper the deal would allow his company to focus on the operational side of the business, hinting the intention is to expand its portfolio of stores.
The group currently owns Toyota Town, Lexus of London, Oakridge Ford, Richmond Hill Hyundai, Richmond Hill Toyota and Thornhill Hyundai.
Capital Automotive has exclusively supported automobile dealers since 1997. Through tailored real estate finance, it says it has assisted dealer groups in growing their organizations, acquiring new locations, upgrading existing facilities, constructing new stores, and facilitating estate planning and partner buyouts.
According to its website, Capital has nearly $3.5 billion invested in over 440 automotive franchise facilities, over 16.3 million square feet of buildings on over 2,600 acres in 35 U.S. states.
Financial details of the deal with Phaeton were not released.
- With files from The Globe and Mail