The McNaught GM Property contains a 56,641 square foot full carrier General Motors dealership facility that was built in 2003, with wide renovations achieved in 2015. The McNaught GM Property occupies approximately 5. 6 acres of land in the Waverley Automall in southwestern Winnipeg, with handy access to major highways in a neighborhood of enormous advertisement advancement. Upon final of the Transaction, an affiliate of AutoCanada can be the operating tenant of the McNaught GM Property and will enter into a 19 year, triple net lease with the REIT. The lease will consist of a contractual annual rent increase after the first year of the lease term, based on the Manitoba Consumer Price Index “Manitoba CPI”.
The St. James VW Property comprises a 39,494 square foot, full service Volkswagen dealership facility built in 2004 / 2005. The St. James VW Property occupies approximately 3. 9 acres of land found at 670 Century Street, in close proximity to the Winnipeg International Airport and CF Polo Park, Manitoba’s largest looking centre, with convenient access to the TransCanada Highway. Upon ultimate of the Transaction, an associate of AutoCanada will be the running tenant of the St.
James VW Property and could enter into a 19 year, triple net lease with the REIT. The lease will include a contractual annual rent boom after the first year of the lease term, according to the Manitoba CPI. AutoCanada Holdings Inc. will provide an indemnity to the REIT in recognize of the lease obligations for both the McNaught GM Property and the St. James VW Property.
The REIT will finance the Transaction via draws on its revolving credit amenities and during the growth of one of its credit facilities, which the REIT will facilitate through the use of the McNaught GM Property and the St. James VW Property as security. The Transaction is anticipated to close later this month, area to original last conditions. The REIT may close on one of the crucial houses in boost of closing on the second property if last circumstances are chuffed on one belongings before situations are happy on any other property.