DRA inks $3.4b deal with automotive REIT.

Capital Automotive REIT, the nation's leading specialty finance company for automotive retail real estate, announced the signing of a definitive merger agreement to be acquired by clients advised by DRA Advisors LLC.

The total transaction value is approximately $3.4 billion, including the assumption of company indebtedness and preferred shares.

Thomas D. Eckert, the company's president and CEO, stated, "We strongly believe that this transaction provides substantial value to our shareholders and is in their best interests. We are confident that our tenants will also be well-served by our ability to pursue our business strategy as a private company and by the resources and experience that DRA possesses."

Brian Summers, managing director of DRA, added, "We and our investors are enthusiastic about partnering with the Capital Automotive team to grow this dynamic specialty retail segment. Our collective energy will be focused on continuing to build tenant relationships by providing the same responsive service that is a hallmark of the company."

Wachovia Securities acted as the company's financial advisor in connection with the proposed transaction, and Latham & Watkins LLP acted as legal counsel to the Company. Blank Rome LLP acted as legal counsel to DRA.

The closing of the transaction, which is currently expected to occur in late 2005 or early 2006, is subject to the approval of the company's common shareholders and other customary closing conditions. The transaction is not subject to any financing conditions.

Capital Automotive, headquartered in McLean, Virginia, is a self-administered, self-managed real estate investment trust. The Company's primary strategy is to acquire real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses.