EG Group said it has agreed to the sale and leaseback on a portfolio of its sites on the east coast of the US to Realty Income Corporation for a gross consideration of approximately $1.5 billion (£1.25bn).
This portfolio – which EG America will continue to operate and trade – comprises 415 store assets under the Cumberland Farms, Fastrac, Tom Thumb and Sprint banners.
EG Group added that it received “a high degree of interest from multiple blue-chip investors and attractive terms” for the transaction, which is in line with its commitment to reduce total net leverage through debt reduction and free cash flow generation.
“Today’s announcement demonstrates the progress we continue to make to put in place a robust capital structure for the medium term that will underpin our long-term strategy and represents an important first step in this process,” Zuber Issa, co-founder and co-CEO of EG Group, commented.
The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions, and the group said it will use net proceeds to repay debt. The assets represent around 15 per cent of the group’s total freehold property in 10 markets.
New York Stock Exchange-listed Realty Income is an S&P 500 company structured as a real estate investment trust. Its monthly dividends are supported by the cash flow from over 12,200 real estate properties primarily owned under long-term net lease agreements with commercial clients.
