The land at two of the gas stations must be purchased before EZ Energy can complete the sale.
EZ Energy Ltd., owner of Easy Trip stores, has sold 18 gas stations in the U.S. for $24.5 million in a sale and lease-back deal. The buyer will lease back the properties to EZ Energy USA Inc. for 15 years, with an option to extend for a further 15-30 years, for $2.27 million a year, the Globes reported.
EZ Energy USA plans to repay $12 million out of the sale proceeds to the banks that lent it the original loan to buy the properties. EZ Energy also plans to report a pretax gain of $8.5 million on the sale, net of transaction expenses, Globes reported.
EZ Energy must purchase the land at two of the gas stations for an estimated $1.15 million, before completing the sale to the buyer.
EZ Energy noted that the lease-back of the gas stations reflects an initial return on investment of 9.25% a year. Rent is expected to grow by 2% a year.
Based in Seven Hills, Ohio, EZ Energy, controlled by chairman Dr. Eli Zehavi, supplies petroleum products to 92 retail locations, including 69 company-operated stores, 17 of which are ampm franchise stores, and 23 contract dealer locations throughout northern Ohio and western Pennsylvania.