Automotive Properties REIT has entered into agreements to acquire two heavy construction equipment dealerships in the Greater Montreal Area and an electric-truck sales outlet in Tampa.

The proposed Tampa acquisition will mark the REIT’s expansion into the U.S.

“Our acquisition of these two heavy construction equipment dealership properties in Greater Montreal will mark our entry into a new industry vertical that has similar characteristics to automotive dealerships, including the essential nature of their business,” said Milton Lamb, President and CEO of Automotive Properties REIT. 

The Greater Montreal properties comprise a 31,000-square-foot John Deere dealership on 6.6 acres in Brossard, Que., operated by Brandt Tractor, and a 28,611-sf Volvo dealership on 5.1 acres in Boucherville, Que., operated by Strongco.

Brandt is based in Regina, while Strongco is a subsidiary of Portuguese firm Nors. Founded in 1933, Nors is a privately-owned company that sells, rents and services construction, infrastructure, mining and forestry equipment, trucks, busses, cars and marine and industrial engines in 16 countries on four continents.

Headquartered in Mississauga, Ont., Strongco’s Canadian subsidiary operates outlets across Canada. The proposed acquisitions are slated to close in December 2024.

If everything goes according to plan, the REIT will also acquire a 25,000-sf Rivian truck sales, delivery, and service centre in Tampa.

The acquisition will increase the REIT’s exposure to the EV retail and service market in North America,” said Lamb.

The REIT plans to finance the acquisitions with cash on hand and its revolving credit facilities, funded in part by the recent $54-million sale of a Markham, Ontario dealership site. The Markham property is slated to be redeveloped as a mixed-use asset that includes a new auto dealership and multi-family residential units.

Photo: Dilawri Group