WALTHAM, Mass. --Global Partners LP continued to keep mum on who bought the company's 30 gas stations and convenience stores in New England as part of a $63.5 million sale-leaseback deal.
The Waltham, Mass.-based company completed the previously announced deal on June 29, selling the locations to what it called "a premier institutional real-estate investor."
In connection with the sale, Global entered into a master unitary lease agreement under which it will lease the 30 properties for an initial term of 15 years with 20 years of contractual extension options. The proceeds from the transaction were used to reduce debt under the partnership’s revolving-credit agreement. As a result of the transaction, Global expects to incur additional rent expenses of approximately $4.4 million for the 12 months ending June 30, 2017.
“This sale-leaseback, along with our previously announced disposition of nonstrategic gasoline station sites, reflects the ongoing execution of our strategy to optimize and further unlock the value in our retail portfolio,” said Global Partners president and CEO Eric Slifka.
In February, Slifka said the company expected to sell 125 “nonstrategic” convenience stores within the next year.
Global Partners is a midstream logistics and marketing company that owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. Global also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. With approximately 1,500 locations, primarily in the Northeast, Global also is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores. It operates c-stores primarily under the XtraMart and Alltown brands.
Global is No. 33 on CSP's 2016 Convenience Top 101 list of the largest convenience-store chains in North America.
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