Capital Automotive REIT Signs Definitive Agreements to Acquire $55 Million in Dealership Properties from Group 1 Automotive and its Affiliates
MCLEAN, Va., Dec. 21 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) today announced that it has signed definitive purchase agreements with Group 1 Automotive, Inc. (NYSE: GPI) and its affiliates to acquire 14 dealerships properties. Of the 14 properties, nine are being acquired from Group 1, and five from affiliates of Group 1 for approximately $55 million in cash.
The acquisitions include 14 dealership properties in two states, representing 20 franchises, and totaling 85 acres and 459,000 building square feet. The average initial lease term for these acquisitions is 30 years, with termination options after years 15, 20 and 25. Group 1 is a leading operator and consolidator in the automotive retailing industry with 57 dealership franchises in six states.
Thomas D. Eckert, president and chief executive officer of Capital Automotive REIT, stated, "This transaction with Group 1 reinforces our continuous effort to partner with the highest quality dealer groups in the country. Since going public last year, Group 1 has distinguished itself among the leading dealer groups and has demonstrated its commitment to high-quality growth. Not only does this partnership strengthen and diversify our existing portfolio, but it also solidifies our strategy of building relationships with automotive retailing's premier operators and consolidators."
B.B. Hollingsworth Jr., chairman, president and chief executive officer of Group 1, added, "We are extremely pleased to partner with Capital Automotive, who has proven that they offer an attractive financing alternative to the automotive retail community. This transaction provides the opportunity to continue to grow our operations by using our capital more efficiently."
Capital Automotive currently owns 113 properties, including 137 automotive franchises representing 35 brands in 18 states. Capital Automotive's $487 million portfolio includes a total of 4.1 million square feet of dealership buildings on 663 acres of property. The properties are leased on a triple-net basis to 28 dealership groups, eleven of which are among the top 100 dealer groups in the country according to Automotive News.
Group 1 Automotive, Inc., headquartered in Houston, is a leading operator and consolidator in the highly fragmented automotive retailing industry. The company owns 57 dealerships franchises comprised of 22 different brands, and 12 collision service centers located in Texas, Oklahoma, Florida, New Mexico, Georgia and Colorado. |
