Automotive Properties Real Estate Investment Trust announced that it has entered into a definitive agreement to purchase the Audi Barrie dealership property in Innisfil, Ontario, for approximately $11.1 million, representing a cap rate of 7.1%. The addition of this property is expected to be immediately accretive to the REIT's Adjusted Funds from Operations on a per unit basis. Audi Barrie is a newly constructed, 25,000 square foot automotive dealership located on 3.1 acres along an attractive commercial corridor neighbouring other luxury dealerships at 2484 Doral Drive in Innisfil, near Barrie, Ontario.

Audi Barrie was one of the three development properties owned by the Dilawri Group at the time of the REIT's initial public offering in July 2015. Pursuant to the strategic alliance agreement entered into with the Dilawri Group at closing of the REIT's IPO, the REIT has a right of first offer to acquire any REIT-suitable properties from the Dilawri Group's property development pipeline. Audi Barrie, operated by the Dilawri Group, will enter into a 19-year lease with the REIT on closing of the acquisition on the same terms as the leases entered into at closing of the IPO.

The REIT intends to fund the purchase of the real estate underlying Audi Barrie through a new mortgage with a Canadian chartered bank and a draw on its existing revolving credit facility. The REIT has completed its diligence in connection with this acquisition and closing is expected to occur in January 2016, subject to customary financing and closing conditions.