WALTHAM, Mass. -- As part of a group of nonstrategic retail locations it is looking to divest, Global Partners LP is offering to sell 19 gas-station and convenience-store properties located in Connecticut, Massachusetts, Maine, New Hampshire and Rhode Island, individually or collectively, by sealed-bid sale.
Six of the sites are in Connecticut, six are in Massachusetts, four are in New Hampshire, two are in Rhode Island and one is in Maine.
The average lot sizes are 28,000 square feet and average building sizes are 1,950 square feet, with buildings ranging from kiosks to locations of more than 4,700 square feet. Most of the sites are branded XtraMart, with CITGO, Exxon, Mobil, Shell and Sunoco fuel.
Twelve of the sites are fee-owned properties and seven are leasholds: Seven are company-owned, company-operated gas stations with convenience stores; four are company-owned properties currently being operated as gas stations and c-stores by commissioned agents on behalf of Global Partners; three are company-leased properties currently being operated as gas stations and c-stores by commissioned agents on behalf of Global Partners; three are company-leased, company-operated gas stations with c-stores; one is a company-owned, dealer-operated gas station with c-store; and one is a company-leased, dealer-operated gas station with c-store.
The master limited partnership (MLP) has retained Chicago-based NRC Realty & Capital Advisors LLC to sell the properties, with or without fuel-supply agreements. Prospective bidders may make their offers according to their own preference. The deadline to receive bids is Oct. 5, 2017.
In February 2016, Global Partners President and CEO Eric Slifka said the company expected to sell 125 nonstrategic convenience stores within a year as part of a strategic action plan.
“Our goals were to ensure a sound balance sheet with ample liquidity and generate sufficient cash flow to cover distributions and capital expenditures without relying on outside sources of capital,” Slifka said in March 2017. “To achieve these goals, our 2016 plan included cutting expenses, accelerating an asset sale program across our portfolio concentrated on nonstrategic assets and, at the same time, focusing efforts on businesses that provide the highest returns.”
The company sold approximately 70% of the sites by the end of 2016, he said.
“Our successful execution of this plan in 2016 and continuing in 2017 has provided Global with increased flexibility to invest in assets that are fundamental to growth objectives for our retail, wholesale and commercial lines of business,” said Slifka.
The company sold most of its nonstrategic retail sites. It also terminated a sublease for more than 1,600 rail cars, saving more than $10 million.
With approximately 1,500 retail locations, primarily in the Northeast, Waltham, Mass.-based Global Partners is one of the largest regional independent owners, suppliers and operators of gas stations and c-stores.