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WALTHAM, Mass. — Global Partners LP completed a previously announced sale-leaseback of 30 convenience stores and gas stations in New England to an institutional investor for $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 $63.5 million in proceeds from the transaction were used to reduce debt under Global Partners’ revolving credit agreement.
As a result of the transaction, Global Partners expects to incur additional rent expense of approximately $4.4 million for the 12 months ending June 30, 2017.
In a news release, the name of the institutional investor was not revealed.
Global Partners President and CEO Eric Slifka previously stated the master limited partnership intends to divest approximately 125 non-strategic convenience stores and gas stations from its portfolio this calendar year.
“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,” he said.
Waltham-based Global Partners is an independent owner, supplier and operator of approximately 1,500 gasoline stations and convenience stores, primarily in the Northeast. It is also 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.