Global Partners Announces $67M Sale-Leaseback Deal
WALTHAM, Mass. — Global Partners LP continues to move on its plan to divest roughly 125 non-strategic sites this year.
In its latest deal, Global Partners reached an agreement with an institutional real estate investor for the sale-leaseback of 33 gasoline stations and convenience stores for approximately $67 million.
As part of the agreement, the retail sites, which are located throughout New England, will be sold to the buyer and leased to Global Partners or its subsidiaries for a period of 15 years with 20 years of contractual extension options.
The transaction, which is subject to customary due diligence, is expected to close no later than early third-quarter.
"Consistent with our objective of providing additional liquidity for the partnership, we expect to use the material proceeds generated from this transaction to reduce debt and provide financial flexibility to reinvest in and expand our businesses," said Eric Slifka, president and CEO of Global Partners. "This sale-leaseback is part of a strategy we shared with investors earlier this year to optimize our assets, in this instance unlocking the value in some of our fee-owned real estate and productively deploying the capital."
This latest transaction comes on the heels of Global Partners' agreement to sell 31 convenience stores and gas stations in New York and Pennsylvania to Binghamton, N.Y.-based Mirabito Holdings Inc. The transaction is also expected to close in the third quarter of this year, as CSNews Online previously reported.
The companies also announced they will enter into long-term supply contracts for branded and unbranded gasoline and other petroleum products.
Waltham-based Global Partners is a midstream logistics and marketing company that owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. With approximately 1,500 locations, primarily in the Northeast, Global also is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores.