Automotive Properties Real Estate Investment Trust said it has agreed to purchase the Go Mazda dealership property in Edmonton, Alta., from Go Auto for $8 million.
The 17,150-square foot, full-service dealership facility sits on 2.27 acres in one of the city’s busiest automotive retail corridors.
The addition of the property is expected to be immediately accretive to the REIT’s adjusted funds from operations on a per unit basis.
This is Automotive Properties’ second acquisition from Go Auto, one of Canada’s dealership groups.
In December 2015, the REIT acquired the Porsche Centre and Jaguar Land Rover Edmonton dealership property from Go Auto for approximately $23 million.
Go Mazda is an established dealership that reopened last month following a major renovation and rebranding.
Upon closing of the acquisition, Go Mazda, owned by Go Auto, will be the operating tenant and will enter into a 17-year, triple-net lease with the REIT, with four extension terms of five years each.
The lease includes a one per cent annual contractual increase after year one. The Go Mazda lease will be indemnified by Go Auto.
“The acquisition of Go Mazda increases our scale in the rebounding Alberta market and strengthens our business relationship with Go Auto, which underscores our focus on providing a real estate monetization solution to a wide range of leading automotive dealership owners,” said Milton Lamb, president and CEO of Automotive Properties REIT.