Blackburn-based EG Group has agreed a $1.5bn (£1.2bn) deal to sell 415 convenience stores in the US to Realty Income Corporation, in a sale-and-leaseback agreement.
The portfolio is expected to be acquired at an estimated cap rate of around 6.9%, with a 20-year weighted average initial lease term.
About 80% of the portfolio’s annualised contractual rent is set to be generated from stores in the North East US, including some 116 properties in Massachusetts, 87 properties in New York and 74 in Florida.
A similar percentage of total annualised rent will come from properties operating under the Cumberland Farms brand. Other EG Group brands in the portfolio include Tom Thumb, Fastrac and Sprint.
Each store in the portfolio measures around 3,700 square feet on average. The deal is expected to close in the Q2 2023.
Sumit Roy, president and chief executive of Realty Income, said: “Our core investment philosophy is to partner with leading operators in industries that have demonstrated an ability to deliver favourable risk-adjusted returns over the long term.
“We believe this portfolio includes brands that are among the most recognisable convenience store brands on the east coast, and the convenience store industry has long been a well-performing staple in our real estate portfolio. We are pleased with the portfolio’s attractive real estate quality, store-level cash flow coverage and average property size.”
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
