Brookfield Property Partners LP is considering selling Capital Automotive, it’s auto dealership landlord, which insiders expect could go for about $5B.
Brookfield acquired Capital Automotive in 2014 from DRA Advisors LLC at a £4.3B valuation. The REIT has built its portfolio by purchasing over 400 properties linked to car dealerships and leasing them back to the business owners.
Capital Automotive provides financing for renovations and expansions. Many of the properties are run under Net-Lease agreements, where tenants pay for all costs beyond rent including taxes, maintenance and insurance. Net-lease properties have been favored by investors lately because of the low-interest-rate environment.