KAPOLEI, Hawaii -- Island Energy Services LLC has put a portfolio of 12 convenience stores up for sale. On June 7, the company directed commercial real-estate firm CBRE Hawaii to proceed with a sale-leaseback program intended to monetize the underlying real-estate value of the 12 locations owned by IES Retail LLC.
Eight of the stations are in Honolulu, two are in Waipahu and one each is in Kailua and Pearl City.
“IES intends to enter into long-term leases at the 12 stations to ensure the continued success of Texaco in Hawaii, aligning these 12 stations with the 44 other Texaco stations across the statewide network,” Carina Tagupa, a spokesperson for Island Energy Services, Hilo, Hawaii, told CSPDaily News.
“Proceeds generated from the sale are expected to be used to invest in the business and serve Hawaii's energy needs,” she said. “There will be no impact to service-station employees, customers and retailers, or to the safe and reliable operations of Texaco service stations.”
Island Energy Services is the exclusive licensee of the Texaco brand in Hawaii. The company is in the process of converting its Chevron locations in Hawaii to Chevron’s sister brand, Texaco. It rebranded the first station, in Hilo, in mid-June.
The company has 56 stations statewide. On Oahu, 29 of 30 have transitioned to Texaco, Tagupa said. On Hawaii Island, four of five have been completed, with the last station in West Hawaii to transition in September. Next week, the company will be rebranding all five stations on Kauai. All of the rebrands will be completed by the end of October.
After the transition, all locations will continue to offer the same service, Safeway reward program and use of existing Chevron and Texaco credit cards. The newly rebranded Texaco stations will also continue to offer Techron in all grades of gasoline: Texaco Unleaded, Power Plus and Power Premium. At select stations, beginning with the Waiakea location, Texaco will be adding diesel.
Kapolei, Hawaii-based Island Energy Services is controlled by One Rock Capital Partners LP, a New York-based private-equity firm. Through its wholly owned affiliates IES Downstream LLC and IES Retail LLC, it operates assets previously owned and operated by Chevron USA Inc., including a refinery, interest in a network of gas stations statewide, four product distribution terminals and related logistical assets.
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