JERICHO, N.Y.--(BUSINESS WIRE)--Getty Realty Corp. (NYSE: GTY) (the “Company”) today announced the effectiveness of definitive agreements for an acquisition lease-back transaction with a U.S. subsidiary of Applegreen PLC (“Applegreen”). Under the terms of the transaction with Applegreen, the Company, through a subsidiary, will acquire interests in 38 fee simple and four leasehold properties (the “Properties”) for $70.1 million and simultaneously enter into a unitary lease with Applegreen covering all of the Properties. The transaction is expected to close before the end of the fourth quarter of 2017.
The Properties consist of 34 convenience store and gasoline stations, many of which contain nationally recognized food offerings such as Burger King, Subway and Blimpie, and eight stand-alone Burger King quick service restaurants located within the metropolitan market of Columbia, SC. The unitary lease to be effective at closing 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. Under the terms of transaction, Getty will receive initial annual rent of $5.0 million from the fee simple properties and a positive rent spread of $0.2 million on the leasehold interests being acquired.
“This acquisition extends our reach into South Carolina, in the desirable and growing Columbia market, and further builds our presence in the Southeast. We are excited to enter into a long-term relationship with Applegreen, the largest convenience store and gasoline station operator in the Republic of Ireland. This is a significant commitment by Applegreen to its U.S. expansion, and we are happy to be their partner in South Carolina. The properties we are acquiring are high-quality convenience stores and gasoline stations, many of which have significant co-branded fast-food offerings. The acquisition of stand-alone Burger King restaurants, which are a part of this portfolio, represents an added opportunity for us to expand our retail portfolio,” stated Christopher J. Constant, Getty’s President & Chief Executive Officer.
The Properties are being acquired from Brandi Inc. and Brandi Stations Inc. (“Brandi”), an independent retailer established in 1974 by its founder, Bob Brandi.
Upon closing, the Company expects the transaction to be immediately accretive to net earnings.
The transaction is subject to numerous closing conditions, including the closing of a purchase agreement between Applegreen and Brandi. The Company can offer no assurances that the transaction will close on the terms described herein, or at all.
CERTAIN STATEMENTS CONTAINED HEREIN MAY CONSTITUTE “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. WHEN THE WORDS “BELIEVES,” “EXPECTS,” “PLANS,” “PROJECTS,” “ESTIMATES”, “ANTICIPATES”, “MAY” AND SIMILAR EXPRESSIONS ARE USED, THEY IDENTIFY FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON MANAGEMENT’S CURRENT BELIEFS AND ASSUMPTIONS AND INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. EXAMPLES OF FORWARD-LOOKING STATEMENTS INCLUDE BUT ARE NOT LIMITED TO STATEMENTS REGARDING THE PERFORMANCE AND CLOSING OF THE TRANSACTION, RENT FROM THE LEASE PERTAINING THERETO AND THE ACCRETIVE NATURE OF THE TRANSACTION.
INFORMATION CONCERNING FACTORS THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS CAN BE FOUND IN THE COMPANY’S PERIODIC REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY RELEASE REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT FUTURE EVENTS OR CIRCUMSTANCES OR REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
About Getty Realty Corp.
Getty Realty Corp. is the leading publicly-traded real estate investment trust in the United States specializing in the ownership, leasing and financing of convenience store and gasoline station properties. As of March 31, 2017, the Company owned 736 properties and leased 87 properties from-third party landlords in 24 states across the United States and Washington, D.C.
About Applegreen PLC
Founded in 1992, Applegreen currently operates 232 convenience stores and gasoline stations in Ireland and the United Kingdom, and has 11 locations in the USA. Applegreen is listed on the Dublin and London Stock Exchanges. In addition to Applegreen branded convenience stores, the company also operates 49 Subway and 16 Burger King quick service restaurants. Applegreen has a number of strategic partnerships with international brands including Burger King, Subway, Costa Coffee, Lavazza, Chopstix, Freshii and Greggs. The company also has its own food offerings through the aCafé and Bakewell café brands. Applegreen was named the NACS Insight 2016 International Convenience Retailer of the Year.