Capital Automotive Partners With BBCN.com
19 January 2000
CARS Invests $300,000 in E-procurement and Auction Provider
MCLEAN, Va., Jan. 19 -- Capital Automotive REIT, the nation's leading
specialty finance company for automotive retail real estate, today announced
it has made a strategic investment though a private placement in BBCN.com, an
Internet-based marketplace designed to allow competitive purchasing between
auto dealerships and their suppliers. Capital Automotive will become the
preferred automotive retail real estate company for the site and will hold a
seat on BBCN.com's Board of Directors. BBCN.com expects to launch its
e-procurement site later this month at the annual National Automobile Dealers
Association conference in Orlando, Fla.
"We are pleased to partner with BBCN.com because we are impressed by their
management team, the positive response that they have received from leaders in
the dealer community and the broad partnerships they are establishing," says
Thomas D. Eckert, President and Chief Executive Officer for Capital
Automotive. "As BBCN.com's preferred automotive real estate partner we will
broaden our exposure and continue to strengthen our franchise value in the
dealer community. Our participation on BBCN.com's Board will provide yet
another channel for our management team to keep abreast of, and to actively
participate in, the Internet revolution taking place in the automotive
industry. We expect BBCN.com's auction and e-procurement services to add to
the profitability of our tenants that utilize the on-line system."
According to BBCN, its new relationship with Capital Automotive offers the
company another edge in the marketplace.
"Our goal is to associate with high quality dealer groups and supply
partners in the industry, and we have done so by adding such a highly
respected firm as Capital Automotive as an investor and partner," said Robert
T. Dowlearn, President and Chief Executive Officer of BBCN.com. "Through our
partnership with Capital Automotive, we can not only strengthen our
relationships with top dealer groups, but also benefit from the company's
expertise as a specialty finance company and innovator in the automobile
dealership industry."
The BBCN.com site will create a real-time online system that provides
increased purchasing efficiencies and expense reduction for automobile dealers
and their supply partners. In addition to an on-line purchasing system, BBCN
will offer an auction for equipment, parts and supplies, plus a forum where
dealers can buy and sell used equipment. The site will function as a place
for vendors to expand their selling opportunities and for dealers to take full
advantage of the marketplace.
About Capital Automotive
Capital Automotive, headquartered in McLean, Va., is a self-administered,
self-managed real estate investment trust formed to acquire the real property
and improvements used by operators of multi-site, multi-franchised automotive
dealerships and related businesses. As of November 30, 1999, the Company has
invested approximately $929 million in automotive properties. Additional
information on Capital Automotive is available on the Company's web site at
http://www.capitalautomotive.com .
To receive Capital Automotive's latest news and corporate developments via
fax at no cost, please call 1-800-PRO-INFO; use Company code CARS. Or visit
The Financial Relations Board's web site at http://www.frbinc.com .
About BBCN
BBCN is an Internet-based marketplace designed to allow for competitive
purchasing to take place between automotive dealerships and their vendors.
BBCN will provide a secure, efficient and centralized online process designed
to measurably reduce expenses and increase net profits for all participants.
At BBCN, users will be able to harness the power of a vertical portal that
effectively matches buyers and sellers within the automotive dealership
industry. For more information, call 1-877-222-6266.