Getty Realty & Applegreen Complete Acquisition Leaseback
JERICHO, N.Y. — Getty Realty Corp. closed on its acquisition leaseback transaction with a U.S. subsidiary of Applegreen plc.
Under the revised terms of the transaction, Getty, through a subsidiary, 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.
The properties consist of 33 convenience store and gasoline stations, many of which contain nationally recognized food offerings such as Burger King, Subway and Blimpie, and five stand-alone Burger King quick-service restaurants within the metropolitan market of Columbia, S.C.
The unitary 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 initial agreement reached in July included 42 properties — 34 c-store/gas stations and eight stand-along Burger King restaurants — for $70.1 million, as CSNews Online previously reported.
"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 J. Constant, Getty's president and CEO.
To date, Getty has now acquired more than 100 properties and invested more than $210 million in 2017.
"Our year-to-date activity demonstrates our commitment to growing the company and positions Getty to generate significant growth for our shareholders for years to come," Constant said.
The company expects its transaction with Applegreen to be immediately accretive to net earnings. Getty funded the transaction with funds available under its credit agreement.
Jericho-based Getty Realty Corp. is a publicly traded real estate investment trust specializing in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, it owned 739 properties and leased 86 properties from third-party landlords in 25 states across the United States and Washington, D.C.