Canadian Market Sees Capital Auto Re-emergence
Published By : 21 Oct 2014 | Published By : QYRESEARCH
In a move of consolidation that is changing the car retailing industry of Canada, Capital Automotive is planning to re-enter the Canadian market. Capital Automotive is a U.S. company that deals in real estate solely for the lands and buildings of automotive dealerships.
Capital Automotive was recently taken over by Brookfield Property Partners earlier this year in a deal that is now closed. Capital has now purchased real estate holdings from Phaeton Automotive Group of London. The company plans to expand beyond its current dealerships of Ford, Toyota, Lexus, and Hyundai.
Phaeton president and CFO Mohan Janakiraman said partnering with Capital Automotive who can handle the real estate aspect of the auto industry, would let his company focus on the operational side of the industry. He added that he wants his company to be a very profitable group instead of a small dealership group that only seeks real estate as a retirement asset.
Another source mentioned that the industry is now headed towards consolidation.
Earlier this year, AutoCanada Inc. bought six stores in Calgary from Hyatt Automotive Group Inc. along with their right to establish a Nissan dealership in Calgary. This shows that the trend of consolidation moving beyond single point dealerships towards smaller dealership groups.
Capital Automotive was a McLean, Vancouver company that was acquired by Brookfield Property Partners from the U.S. in August. Capital has already sold other Canadian real estate in 2010 and 2011.
Phaeton owns dealerships in London and Richmond Hill, Ontario. The company believes in generation of profit from all areas of the auto business instead of focusing on the new cars sector.