Automotive Properties Real Estate Investment Trust has entered into an agreement to purchase the property where the Country Hills Volkswagen operates in Calgary for about $18 million.
The property includes a newly-built 34,646-square-foot, full-service Volkswagen dealership facility operated by Dilawri Group of Companies. It’s located on about 4.7 acres at 11380 Stonehill Drive N.E. ,just north of the Calgary International Airport.
“Upon closing of the acquisition, Country Hills Volkswagen will be the operating tenant and will enter into an 18-year, triple-net lease with the REIT. The lease includes a contractual 1.5 per cent annual rent increase after year one and is indemnified by a Dilawri company,” said the REIT in a news release.
As part of the purchase, the REIT said it will issue 480,522 trust units of the REIT to Dilawri valued at about $5 million, based on a price of $10.4047 per unit.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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