JERICHO, N.Y. -- Getty Realty Corp. has closed its acquisition-leaseback transaction with a U.S. subsidiary of Ireland's Applegreen PLC. Under the revised terms of the transaction, the company acquired interests in 38 fee-simple properties for $68.3 million and simultaneously leased them under a unitary lease to the U.S. subsidiary of Applegreen.
In July, Applegreen agreed to acquire The Brandi Group, which operates the 42-unit Pitt Stop convenience-store chain based in Columbia, S.C., for $5.4 million, including working capital.
The properties consist of 33 convenience stores and gas stations, many of which contain food offerings such as Burger King, Subway and Blimpie, and five stand-alone Burger King quick-service restaurants (QSRs) located within the metropolitan market of Columbia, S.C.
The lease provides for an initial term of 15 years, with four five-year renewal options. Rent is scheduled to increase annually during the initial and renewal terms of the lease.
“We are pleased to announce the closing of the Applegreen transaction, which both extends our reach into South Carolina, and commences our long-term relationship with Applegreen, the largest convenience-store and gasoline-station operator in the Republic of Ireland,” said Christopher Constant, Getty’s president and CEO.
The company expects its transaction with Applegreen to be immediately accretive to net earnings. The company funded the transaction with funds available under its credit agreement.
In 2017, Getty has acquired more than 100 properties and invested more than $210 million.
Getty Realty, Jericho, N.Y., is a publicly traded, U.S. real estate investment trust (REIT) specializing in the ownership, leasing and financing of c-store and gas-station properties. As of June 30, 2017, the company owned 739 properties and leased 86 properties from third-party landlords in 25 states and Washington, D.C.