LAVAL, Quebec -- In a rare sale of real estate, Alimentation Couche-Tard Inc., through its subsidiaries Circle K Stores Inc. and Mac's Convenience Stores LLC., entered into a sale and leaseback transaction with Cole Capital last week relating to 83 properties sold for total gross selling price of $131.4 million. The proceeds will be used to reduce Couche-Tard's term revolving unsecured operating credit.
The properties that were sold are located in several states in the Unites States and are subject to leases agreements with an initial average term [image-nocss] of 20 years, to which are attached renewal options for an additional 45 years.
I am very satisfied with this transaction, which is part of our long-term financing plan and improves our short-term financial leverage, said Richard Fortin, executive vice president and CFO.
One industry watcher told CSP Daily News the sale-leaseback is likely an indication that a good-sized acquisition or two are in the wings for Couche-Tard. With low interest rates and an abundance of inventory, it's a great time to buy, said the unnamed source.
The company has stated that it plans to add 200 to 300 stores by the end of the fiscal year, which ends in April.
Laval, Quebec-based Alimentation Couche-Tard Inc. is the leader in the Canadian convenience-store industry. In North America, Couche-Tard is the second-largest independent convenience-store operator (whether integrated or not with a petroleum company) in terms of number of stores. Couche-Tard's network is comprised of 5,637 convenience stores, 3,434 of which include motor-fuel dispensing, located in nine large geographic markets, including six in the United States covering 29 states and three in Canada covering six provinces.
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