Global Partners completes a transaction to further unlock the value in their retail portfolio.
On June 29, 2016, Global Partners LP completed its sale-leaseback of certain gasoline stations and convenience stores in New England to a premier institutional real estate investor.
The previously announced transaction closed for a total purchase price of approximately $63.5 million. In connection with the sale, Global entered into a master unitary lease agreement under which it will lease the 30 properties for an initial term of 15 years with 20 years of contractual extension options. The proceeds from the transaction were used to reduce debt under the Partnership’s revolving credit agreement. As a result of the transaction, Global expects to incur additional rent expense of approximately $4.4 million for the 12 months ending June 30, 2017.
“This sale-leaseback, along with our previously announced disposition of non-strategic gasoline station sites, reflects the ongoing execution of our strategy to optimize and further unlock the value in our retail portfolio,” said Global president and CEO Eric Slifka.