The company has signed a non-binding contract to buy five gas stations and 35 fuel-supply contracts for $3.6 million from an unnamed seller. In the second deal, the company has signed a non-binding contract to sell the land occupied by four gas stations and convenience stores in Cleveland, Ohio, for $6.9 million to a U.S. real estate investment trust (REIT) in a sell and lease-back deal. Both deals were reported by Globes Online.[image-nocss]
EZ Energy will lease the properties for 20 years, with a 10-year option to extend. Rent will reflect a return on investment of 9.75% per year, amounting to $672,000 in the first year and will rise by 2% in the second year, according to the report.
If the sale is closed, EZ Energy will have sold the property rights to 16 of its 41 properties for a total of $24 million, amounting to 74% of the $32.5 million total investment in these properties, which it purchased in June.
On June 8, CSP Daily News reported that EZ Energy USA bought 41 gas stations from the BP Global plc unit of BP Products North America Inc., Houston, for $32.5 million.Click here to read more about that deal.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.