You are here
Israel – Globes.com reported yesterday, Christmas Day, that EZ Energy Ltd. has sold 18 gas stations in the U.S. for $24.5 million in a sale and lease-back deal. The buyer will lease back the properties to EZ Energy USA Inc. for 15 years, with an option to extend for a further 15-30 years, for $2.27 million a year
According to the report, EZ Energy USA will repay $12 million out of the sale proceeds to the banks which lent it the original loan to buy the properties. EZ Energy will report a pretax gain of $8.5 million on the sale, net of transaction expenses. The company will have to buy land at two gas stations for an estimated $1.15 million, before the sale to the buyer.
EZ Energy says that the lease-back of the gas stations reflects an initial return on investment of 9.25 percent a year. Rent will rise by 2 percent yearly.
EZ Energy, controlled by chairman Dr. Eli Zehavi, owns 100 gas stations in the U.S.