Getty Realty Corp. to Acquire 42 Properties for $70 Million
- Company Acquiring High-Quality Properties in Metropolitan Columbia,
SC -
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.
Forward-Looking Statements
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.
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