This should make their position stronger and the only play in this segment of the industry
Capital Automotive REIT in Agreement to Acquire Property Portfolio of Automotive Realty Trust of America
MCLEAN, Va., July 23 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) today announced execution of a definitive agreement that will permit Capital Automotive REIT to purchase properties currently under contract with Automotive Realty Trust of America (ARTA). ARTA has contracted with 17 automobile dealer groups to acquire 67 properties having a value of $334.5 million.
Under the terms of the definitive agreement, ARTA has agreed to assign its purchase contracts to Capital Automotive REIT, subject to the approval of the respective dealer groups. This transaction is subject to the revision of certain purchase and lease terms and the satisfactory completion by Capital Automotive REIT of property level and financial due diligence. ARTA must deliver a minimum amount of assets by the end of the due diligence period but may provide replacement properties in the event certain dealer groups elect not to participate in this transaction or Capital Automotive elects to reject certain properties.
The consideration for the transaction will be a combination of cash and operating partnership units. In addition, Capital Automotive REIT has agreed to compensate ARTA on a pro rata basis upon the delivery of these assets, as well as upon the acquisition of ARTA's existing marketing network and its acquisition pipeline. It is anticipated that this transaction will be completed during 1998.
Automotive Realty Trust of America had filed a registration statement on April 20, 1998 with the Securities and Exchange Commission to pursue an initial public offering as a self-administered, self-managed real estate investment trust.
Capital Automotive REIT, headquartered in McLean, Virginia, is a self-administered, self-managed real estate investment trust formed to acquire the real property and improvements used by operators of multi-site, multi-franchised motor vehicle dealerships and motor vehicle related businesses. Additional information on Capital Automotive REIT is available on the Company's website at www.capitalautomotive.com.
Capital Automotive REIT is being advised by Friedman, Billings, Ramsey & Co., Inc. |
