Circle K is expanding with two to four new convenience stores and mini travel centers annually in New York over the next several years through a development partnership between The Briad Group and Peachtree Group.
Investment management firm Peachtree is expanding its private credit platform into the convenience and fuel retail sector with up to $200 million in financing targeted to Livingston, New Jersey-based Briad for the development and acquisition of new sites.
Each planned location will be about 7,000 square feet and built as a multibrand concept combining fuel, convenience retail and co-located quick-service restaurants, including Wendy’s, Dunkin’, Jimmy John’s and Buffalo Wild Wings Go.
Atlanta-based Peachtree has already closed its first Circle K development loan for a site in Binghamton, New York, where Briad is building a Wendy’s- and Dunkin’-anchored mini travel center. The building will feature two drive-thru lanes to serve both QSR brands.
“We have known and worked with the Peachtree team for years, creating a shared vision based on trust,” said Brad Honigfeld, CEO of The Briad Group, a franchisee of Laval, Quebec-based Circle K, which is owned by Alimentation Couche-Tard. “They understand our business and our growth strategy, and their ability to provide flexible capital makes them the ideal partner as we expand our footprint with Circle K across New York.”
This financing supports, in part, Briad's recently announced agreement with Circle K to more than double the chain’s presence in New York. Under the deal, Briad will open 40 franchised Circle K stores across upstate New York, adding to Circle K's existing base of about 30 locations statewide.
“This initiative reflects the strength of our private credit platform and the value we bring as a capital partner,” said Greg Friedman, CEO of Peachtree. “By providing flexible financing to experienced operators like The Briad Group, we can help accelerate its growth while creating durable assets that generate strong, risk-adjusted returns for our investors.”
Since 1999, Peachtree has provided Briad with more than $100 million in financing for hotel developments under the Marriott and Hilton brands, a track record both companies say lays the foundation for their latest expansion into convenience retail.
Alimentation Couche-Tard operates in 29 countries and territories, with nearly 17,300 stores, of which approximately 13,200 offer road transportation fuel. Primarily under the Circle K banner, it is one of the largest convenience-store operators in the United States, as well as in Canada, Scandinavia, the Baltics, Belgium and Ireland. It also has a presence in Luxembourg, Germany, the Netherlands, Poland and Hong Kong.
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