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CLEVELAND -- EZ Energy Ltd. subsidiary EZ Energy USA signed a non-binding contract to buy five gas stations and 35 fuel supply contracts for $3.6 million from an unnamed seller, Globes Online reported.
In a separate deal, EZ Energy also signed a non-binding contract for a sale leaseback arrangement for the land occupied by four gas stations and convenience stores in Cleveland, Ohio, to a real estate investment trust deal for $6.9 million, according to the report.
As CSNews Online reported in a newsflash yesterday, the sale leaseback allows EZ Energy to lease the properties for 20 years, with a 10-year option to extend. Rent for those sites will reflect a return on investment of 9.75 percent per year, amounting to $672,000 in the first year, and will rise 2 percent in the second year, according to the report.
If completed, the deal will mark EZ Energy's sale of property rights for 16 of its 41 properties, for a total of $24 million, amounting to 74 percent of the $32.5 million total investment in these properties, which it purchased in June, the Web site reported.
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