JERICHO, N.Y. -- Getty Realty Corp. has closed an acquisition and leasing transaction with a U.S. subsidiary of Applegreen PLC. It has acquired fee-simple interests in six convenience-store and gas-station properties for $17 million and simultaneously entered into a unitary lease with Applegreen covering all of the acquired properties.
The properties are all located within the metropolitan market of Columbia, S.C.
“We are extremely pleased to increase our footprint in the growing Columbia, S.C., market and expand our relationship with Applegreen, which began in October 2017, when we acquired a 38-unit portfolio in Columbia, S.C., and entered into our initial lease with Applegreen’s U.S. subsidiary.”
Applegreen is an operator of c-stores and gas stations with an established network in Ireland and the United Kingdom and “a growing presence” in the United States, said Christopher Constant, Getty Realty’s president and CEO.
“This transaction further demonstrates our commitment to growing our portfolio with a focus on acquiring strong operating real estate and creating shareholder value,” he said.
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. The company funded the transaction through funds available under its revolving credit facility, and it expects the transaction to be immediately accretive to net earnings.
Getty Realty is a major U.S. publicly traded real estate investment trust (REIT) specializing in the ownership, leasing and financing of c-store and gas-station properties. As of June 30, 2018, it owned 854 properties and leased 78 properties from third-party landlords in 30 states and Washington, D.C.
Founded in 1992, Applegreen operates 274 c-stores and gas stations in Ireland and the United Kingdom, and has 68 locations in the United States. It has strategic partnerships with international brands, including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii and 7-Eleven. The company also has its own foodservice offering through the Bakewell brand.
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