Dilawri Group completes land acquisition from REIT in $54 million deal
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Automotive Properties Real Estate Investment Trust (REIT) announced it has completed the sale of a dealership property known as the Kennedy Lands in Markham, Ontario, to a member of the Dilawri Group.
The $54 million sale was agreed to in July.
Dilawri, which operates 82 dealerships in five provinces and the U.S. state of Virginia, owns a dealership — Markham Honda — located on the site, which is currently being redeveloped. The deal allows REIT to receive an addition cash consideration if the area is successfully rezoned “with density in excess of an agreed threshold.”
In a news release, REIT, which owns the real estate of 76 dealership sites in six provinces, said it will use the proceeds of the sale primarily to repay debt under its revolving credit facilities, which it said gives it “additional acquisition capacity.” The trust also expects to declare a special distribution to holders of its trust units in December from the increase in taxable income generated by the sale.
