Go Auto
Sale-leaseback enables seller to unlock capital to reinvest in its core business operations
Tenant Description: One of the largest automotive dealership groups in Canada with 74 locations across Western Canada and the United States
Total Investment: $210 million
Transaction Type: Sale-leaseback*
Location: Canada
Square Footage: 570,000 square feet
Facility Type: 14 automotive dealerships
W. P. Carey completed the $210 million (CAD $287 million) sale-leaseback of 14 automotive dealerships located in top Western Canadian markets including Greater Vancouver, Edmonton, Calgary and Winnipeg. Totaling over 570,000 square feet, the portfolio is triple-net leased to Go Auto, the second largest automotive dealership group in Canada.
The acquired properties are in strategic locations in top retail and commercial corridors, along highly trafficked thoroughfares. Quality automotive real estate is extremely supply constrained in these major markets, enhancing the strategic importance of these sites.
The portfolio comprises a diverse roster of global automotive OEMs and is highly profitable at the site level. It also encompasses a critical portion of Go Auto’s operating footprint. It is triple-net leased for a term of 25 years with annual CPI-based rent escalations.
*In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.
We are pleased to have completed this transaction with Go Auto, supporting the growth of one of Canada’s premier automotive retail operators and marking a meaningful expansion of our portfolio across top Western Canadian markets. This portfolio includes irreplaceable automotive real estate in highly sought-after, supply-constrained locations. 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.