RLPC-DRA Advisors to sell Capital Automotive to Brookfield for $4.3 bln

NEW YORK Thu Aug 28, 2014 11:08am EDT

NEW YORK Aug 28 (Reuters) - Real estate investment firm DRA Advisors LLC has agreed to sell auto financier Capital Automotive LP to Brookfield Property Partners for $4.283 billion, sources familiar with the matter said on Thursday.

The purchase price includes the assumption of all existing debt, as well as debt facilities of $400 million to fund the transaction, the sources said.

Capital Automotive will launch the new debt facilities after the Labor Day holiday on September 1, and will also seek approval from existing lenders to allow a change of control, sources said.

DRA Advisors and Capital Automotive could not immediately be reached for comment. Brookfield Property Partners declined to comment.

Capital Automotive intends to issue $300 million of asset-backed securities (ABS) and $100 million of new loans under its second-lien credit facility.

Barclays is the administrative agent of Capital Automotive's existing credit facility, which includes a $1.5 billion, six-year term loan B and a $325 million, seven-year second-lien term loan.

Capital Automotive expects to close the acquisition in the fourth quarter of 2014.

Capital Automotive is based in McLean, Virginia, and provides real estate finance for automotive dealers to acquire new locations and upgrade facilities.

The company was bought by DRA Advisors in 2005 in a deal valued at $3.4 billion, according to Thomson Reuters LPC data. (Editing by Tessa Walsh)