Automotive Properties REIT has completed the acquisition of three Quebec dealerships for $52.5 million.

The dealerships are located at 2291, 2301 and 2311 Place Transcanadienne in the Montreal suburb of Dorval, Que., and comprise Subaru Des Sources, Honda Des Sources and Volkswagen Des Sources. They span 140,693 square feet of gross leasable area on approximately nine acres of land situated along a commercial corridor adjacent to the Trans-Canada Highway, near Montreal-Pierre Elliott Trudeau International Airport.

The Dilawri Group has leased the properties under triple-net deals, holding renewal rights.

The REIT completed part of the purchase through an interest-only vendor take-back mortgage through an affiliate of the vendor at an interest rate of 4.5% under a five-year term. The balance was funded by the REIT’s credit facilities.

Automotive Properties REIT said it intends to repay the credit facilities with part of the proceeds of a recently announced bought-deal equity offering expected to close Thursday.

Pictured: An automobile dealership in Dorval, Que., acquired by Automotive Properties REIT.

Photo: Subaru Des Sources