Half-interest sale reduces near-term leasing risk for Vaughan site
The ownership profile of a prominent Vaughan automotive property has changed after Automotive Properties REIT agreed to sell a 50 per cent interest in the dealership at 9088 Jane St. to the Dilawri Group for $16 million. The transaction, announced Aug. 14, implies a total property valuation of approximately $32 million and keeps Automotive Properties as 50 per cent owner.
The 68,874-square-foot dealership sits on 2.98 acres near Vaughan Mills mall. Built in 2006, the site historically operated as Pfaff Audi. Automotive Properties acquired the property in 2016 for $17.2 million, according to the REIT’s earlier announcement.
Under the deal, a Dilawri affiliate will occupy the site as a full-service automotive dealership under a new 16-year triple-net lease. The lease includes a landlord redevelopment option and is scheduled to begin rent payments on Dec. 1, with the transaction expected to close by the end of September.
The timing of the new lease follows notice from the existing tenant that it intends to vacate when its current lease expires around Sept. 1. Automotive Properties said the new agreement removes a near-term leasing risk for the REIT and shifts occupancy certainty to the end of the year.
"Following the Vaughan transaction and other recent renewal activity, it will have no material lease expirations until 2028."
That outlook is central to Automotive Properties’ framing of the deal. Company statements indicate the sale was completed at a premium to the property’s IFRS value — meaning Dilawri paid more than the carrying value reported on the REIT’s financial statements — although the REIT did not disclose the size of that premium.
- Property: 9088 Jane St., Vaughan — historically Pfaff Audi
- Size: 68,874 sq. ft. on 2.98 acres
- Transaction: 50% interest sold to Dilawri for $16 million (implied $32M value)
- Lease: 16-year triple-net lease, rent starts Dec. 1; transaction to close by end of September
For Vaughan, the deal touches several practical local concerns: continued automotive retail presence in a major shopping and employment node near Vaughan Mills; a long-term lease that anchors activity at a sizable site; and the potential for future redevelopment under the lease’s landlord option.
Automotive Properties REIT manages a portfolio of income-producing commercial buildings across Canada and the United States. The company said it now owns 95 income-producing properties totalling approximately 3.5 million square feet. The Vaughan transaction, combined with other recent lease renewals, contributes to the REIT’s stated near-term stability in cash flow and occupancy.
| Detail | Figure |
|---|---|
| Address | 9088 Jane St., Vaughan |
| Building area | 68,874 sq. ft. |
| Land area | 2.98 acres |
| Sale (50% interest) | $16 million |
| Implied total value | $32 million |
| Original purchase (2016) | $17.2 million |
| New lease | 16-year triple-net; rent from Dec. 1 |
Local real estate observers will watch whether the landlord redevelopment option is exercised in coming years. Redevelopment could reshape how the site integrates with nearby retail and transportation networks, including traffic patterns around Jane Street and the Vaughan Mills area. For now, the headline outcome for residents and investors is a long-term tenant commitment from one of Canada’s largest automotive groups and a strengthened near-term lease profile for the REIT.
Automotive Properties did not disclose the premium paid by Dilawri, and further financial details were not released. The REIT expects the transaction to close by the end of September, at which point the new lease will formally support the property’s cash flow moving into 2027 and beyond.
