Automotive Properties REIT has completed the acquisition of two heavy construction equipment dealerships in the Greater Montreal Area for a combined price of $25.4 million.

The two previously announced separate deals mark the REIT’s entry into the heavy-equipment dealerships. Heavy-equipment dealerships have similar characteristics to automotive dealerships, Milton Lamb, the REIT’s president and CEO said previously.

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 REIT made the purchases with cash on hand and funds from its revolving credit facilities, funded in part by the recent $54-million sale of a Markham, Ont., 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.

Pictured: Heavy-equipment dealership in Boucherville, Que., acquired by Automotive Properties REIT

Photo: Brandt