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SAN ANTONIO — CST Brands Inc. inked an agreement Monday to sell the real property associated with 29 recently constructed, new-to-industry (NTI) stores to CrossAmerica Partners LP for $135.5 million. All of these NTI stores are large-format locations that have broader categories and food offerings, as well as more fuel dispensers compared to legacy CST stores.
Under the terms of the agreement, CrossAmerica will lease back all of the acquired properties to CST at a triple-net lease rate of 7.5 percent for a 10-year initial term. The leases will automatically renew at predetermined leased rate increases.
In addition to acquiring the stores, CrossAmerica also agreed to acquire an additional 12.5-percent limited partner interest in CST Fuel Supply LP for a total consideration of approximately $126 million. CST Fuel Supply LP and its subsidiaries provide fuel to substantially all of CST's U.S. company-operated convenience stores and largely maintains the fuel supply agreements between CST and its fuel suppliers.
For both transactions, CrossAmerica will pay compensation of $261.5 million, which will consist of $142 million in cash and approximately $119.5 million or 3.6 million newly issued common units representing limited partner interests in CrossAmerica.
San Antonio-based CST Brands operates nearly 1,900 convenience stores in the United States and Canada. In the U.S., many of its stores operate under the Corner Store banner. CST also owns the general partner of Allentown, Pa.-based CrossAmerica Partners, a master limited partnership and wholesale distributor of motor fuels.
On Monday, CrossAmerica also announced its purchase of 41 company-operated One Stop convenience stores, along with four commission agent sites, nine dealer fuel supply agreements and one freestanding franchised quick-service restaurant. For more on the One Stop acquisition, click here.