Capital Auto, Kimco in joint venture on Canada
Thu Jun 2, 2005 09:12 AM ET
CHICAGO, June 2 (Reuters) - Capital Automotive REIT (CARS) and Kimco Realty Corp. (KIM) , which owns and manages shopping centers anchored by grocery and drug stores, have formed a joint venture to buy automobile retail real estate in Canada, the companies said on Thursday.
Capital Automotive, which finances auto dealer real estate, said the main strategy of the venture will be to buy property to be leased to dealers under long-term leases. It also will provide mortgages, facility improvements, construction financing and other services in certain cases.
There are an estimated 3,500 franchised auto dealerships in Canada, McLean, Virginia-based Capital Automotive said.
The joint venture has closed its first acquisitions, totaling C$6.5 million, Capital Automotive said. The acquisitions include two dealers in Toronto in business for about 18 years, operating Nissan and Infiniti franchises.
Capital Automotive had invested nearly $2.3 billion in 343 properties, consisting of 505 auto franchises in 31 states, as of March 31. About three-fourths of its real estate investments are in the top 50 U.S. metropolitan areas and in properties leased to the largest 100 dealer groups. |
