W. P. Carey has completed a $287-million sale-leaseback of 14 automotive dealership properties across Western Canada.

The off-market transaction covers more than 570,000 square feet of dealership space in major markets including Greater Vancouver, Edmonton, Calgary and Winnipeg. The portfolio is now triple-net leased back to its seller Go Auto, the second-largest automotive dealership group in Canada.

Boyd Borjiet, senior vice-president of investments at W. P. Carey, said the deal supports the growth of one of Canada’s premier automotive retail operators. The sale-leaseback also marks a meaningful expansion of W.P. Carey’s portfolio across top Western Canadian markets, he added.

“This portfolio includes irreplaceable automotive real estate in highly sought-after, supply-constrained locations,” he said. “The transaction, being off-market, exemplifies our flexible, relationship-driven investment approach, and further solidifies W. P. Carey’s position as one of the leading providers of sale-leaseback financing in Canada.”

The properties are located in high-traffic retail and commercial corridors where automotive real estate is considered supply constrained, said W.P. Carey. “The portfolio represents a key component of Go Auto’s operating footprint and includes a range of global automotive original-equipment-manufacturer brands.

The lease term is 25 years and includes annual rent escalations tied to the consumer price index.

Edmonton-based Go Auto operates 74 locations across Western Canada and the United States, offering more than 16,000 new and pre-owned vehicles across 31 brands.

New York-based W.P. Carey a large net-lease REIT with a highly diversified commercial real estate portfolio that includes approximately 1,700 properties covering approximately 183 msf. The company also has offices in London, Amsterdam and Dallas and remains focused on investing primarily in single-tenant industrial, warehouse and retail properties located in the U.S., Canada and Europe, under long-term net leases with built-in rent escalations.

Pictured: Richmond Audi in Richmond, B.C., one of the properties sold to W.P. Carey as part of its sale-leaseback with Go Auto.

Photo: Courtesy of W.P. Carey