Global Partners LP today announced that on June 29, 2016 it completed the previously announced sale-leaseback of certain gasoline stations and convenience stores located in New England to a premier institutional real estate investor 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.
A publicly traded master limited partnership, Global 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. Global also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. The Partnership is engaged in the transportation of crude oil and other products by rail from the mid-continental U.S. and Canada to the East and West Coasts for distribution to refiners and others. 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. Global is No. 276 in the Fortune 500 list of America’s largest corporations. For additional information, visit www.globalp.com.
