Multiland Pacific Holdings was established in 2011 as a specialized automotive real-estate finance and holding company. Our purpose is to collaborate with dealerships by providing sale and leaseback capital to the retail industry.
Our current portfolio is comprised of over 2,300,000 square feet of automotive space over twenty-four facilities, including new car dealerships, pre-owned centers and body shops.
Realize the equity currently invested in your real estate.
Maintain effective control for your business operations.
Increase the return on the equity in your real estate.
Enhance your position for any possible future sale.
Assist in generational transfers and unlock equity.
Efficiently defer tax liabilities while generating liquidity.
Sale & Lease Back transactions are a pragmatic way to raise capital for expansion and investment, or unlock equity.
The Sale and Lease Back of dealership premises is a pragmatic option for dealers who are looking at ways to raise capital for expansion and investment or as a way to unlock equity during succession strategies. This option allows the dealers to tap into equity currently invested in the real estate with a potential to invest in higher return investments while securing the real estate through a long term lease with a partner that understand the business. The sale and leaseback option can also assist dealers with estate planning by allowing dealers to distribute equity in the business without affecting operations of the dealership.
Dealers often use the capital received from sale and lease back arrangement for acquisitions, expansion plans for their operations and venture into new lines of business. Dealers also achieve the flexibility to pursue other personal goals such as estate planning, liquidity, or diversification.
Multiland Pacific Holdings also offers a viable option for dealers who are considering selling their operations to interested parties. Through a sale and leaseback, dealers may be able to maximize their proceeds by segregating the sale of their real estate and operations.
To summarize, the sale-leaseback transaction allows dealers to:
A pragmatic option for dealers looking to raise capital for expansion or to unlock equity.
Investing in real estate and improvements used by automotive dealers and other automotive-related properties.
Multiland Pacific Invests in the real estate and improvements used by automotive dealers and other automotive-related properties. The properties acquired are leased back to the sellers under long-term leases.
Property Types: New and used automobile retailing sites and related businesses such as body shops, PDI centers etc.
Purchase Price: 100% of fair market value of the land and improvements.
Transaction Size: Minimum investment is generally in the $5 million range.
Locations: Throughout Canada.
Consideration: Cash, proceeds of financing, assumption of existing debt, joint venture partnership or a combination of any of the above. Sellers also have the opportunity to take MPH shares in lieu of cash for tax deferral purposes.
Lease Type: Triple net.
Initial Term: 10-15 years or more.
Renewal Options: Multiple five year renewal options, at tenants election.
Annual Escalations: Based primarily on inflation or predetermined fixed escalations.
Personal Guarantees: Usually not required.
Additional Security: A corporate guarantee, cross-guarantee or parent company guarantee is usually required.
Frequently Asked Questions
We purchase new and used dealership sites and related businesses.
Normally our preferred transaction size is at least $8.0 million in real estate, but we do consider properties in the $5.0 million range.
The sale and lease back option is a pragmatic option for dealers who are looking at ways to raise capital for expansion or investment. This option allows the dealers to tap into equity currently invested in the real estate with a potential to invest in higher return investments while securing the real estate through a long term lease. Sales and lease back transactions may also facilitate succession planning by unlocking equity while retaining ownership of the business for the next generation.
We perform an extensive due diligence on each acquisition, based on its own merits, including a real estate review, a financial review, an environmental review, a transaction structure review and a market status review.
Properties are acquired at their fair market value based on appraisals prepared by appraisers and at appropriate capitalization rates.
Personal guarantees are typically not required depending on the financial strength of the business.
Base rent is determined by multiplying the purchased property value by a capitalization rate also known as cap rate. This capitalization rate is determined taking into consideration several factors, such as:
Rent increases are determined based primarily on normal inflation.
The base lease term is normally 10 to 15 years with multiple 5 year renewal options to provide a total lease term of 25 to 30 years.
A triple net lease is required to be signed. This is a type of lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, utilities and maintenance on the property, in addition to the base rent. In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of the property.
Over 24 automotive facilities, including new car dealerships, pre-owned car centers and body shops.
At Multiland Pacific Holdings, our current portfolio consists of over 2,300,000 square feet of automotive space distributed over twenty-four facilities, including new car dealerships, pre-owned car centers and body shops.
These include:
- OpenRoad Toyota Richmond. 13100 Smallwood Place, Richmond, BC.
- OpenRoad Lexus Richmond. 5571 (5631) Parkwood Way, Richmond, BC.
- OpenRoad Toyota Port Moody. 3150 St. John Street, Port Moody, BC.
- OpenRoad Lexus Port Moody. 3150 St. John Street, Port Moody, BC.
- OpenRoad Honda Burnaby. 6984 Kingsway, Burnaby, BC.
- OpenRoad Honda Burnaby (Service). 6957 Beresford Street, Burnaby, BC.
- The BMW Store. 2040 Burrard Steet & 1740 W 5th Ave, Vancouver BC.
- Porsche Centre Langley. 6016 Collection Drive, Langley, BC.
- Jaguar Land Rover Langley. 5978 Collection Drive, Langley, BC.
- OpenRoad Exotics. 6006 Collection Drive, Langley, BC.
- OpenRoad Infiniti. 5995 Collection Drive, Langley, BC.
- OpenRoad Hyundai Richmond. 13251 Smallwood Place, Richmond, BC.
- OpenRoad Mazda Port Moody. 3170 St. John Street, Port Moody, BC.
- OpenRoad Toyota Abbotsford. 30210 Automall Drive, Abbotsford, BC.
- OpenRoad Toyota Peace Arch. 3174 King George Boulevard, Surrey, BC.
- BMW Langley. 6025 Collection Drive, Langley, BC.
- MINI Langley. 6025 Collection Drive, Langley, BC.
- OpenRoad Richmond Auto Body. 2691 No.5 Road, Richmond, BC.
- Brampton East Toyota. 2 Maritime Ontario Blvd, Brampton, ON.
- OpenRoad Honda. 4 Maritime Ontario Blvd, Brampton, ON.
- PDI Center - Langley. 23360 Fraser Hwy, Langley, BC.
Future Development:
- Future Location: Mercedes. 100 Woolridge Street, Coquitlam, BC.
- Future Location: OpenRoad Honda Burnaby. 5744 Byrne Road, Burnaby, BC.
- Future Location: Porsche Centre Richmond. 13171 Smallwood Place, Richmond, BC.
- Future Development: 5975 Collection Drive, Langley, BC.
- Future Development: 6 Maritime Ontario Blvd, Brampton, ON.
Multiland Pacific Holdings
13251 Smallwood Place,
Richmond, BC. V6V-1W8
Realize the equity currently invested in the real estate