GPM receives $ 1 billion real estate pledge

RICHMOND, Virginia – GPM Investments, a wholly owned subsidiary of ARKO Corp., has entered into an agreement with real estate investment company Oak Street Real Estate Capital LLC. Oak Street has agreed to purchase and lease real estate associated with convenience store and gas station brand acquisitions from GPM and is committing up to $ 1 billion to the program for one year.

Under the agreement, GPM will own and operate the related acquired businesses, and Oak Street will own and lease the properties to GPM.

GPM, which operates or supplies approximately 1,350 company-operated stores and 1,600 dealer locations, has completed 18 acquisitions since 2011, bringing the company to nearly 3,000 locations with more than 10,000 employees operating in 33 states and in Washington, DC This agreement once again demonstrates the company’s ability for continued commitment to aggressive growth, he said.

“We believe that working with Oak Street will allow us to be a more attractive acquirer and add additional flexibility as we structure acquisitions,” said Arie Kotler, President and CEO of GPM. “We remain very focused on our core acquisition model, and we anticipate that this partnership will improve the certainty of transaction execution and, therefore, strengthen our growth as a business.”

Marc Zahr, CEO and Managing Partner of Oak Street, said, “ARKO is a phenomenal company that makes the right strategic decisions. Their ability to use our balance sheet to fund their real estate footprint allows them to focus on their profitable growth and core businesses. We are excited about what our partnership can do for their business and contribute to their continued success. “

GPM, based in Richmond, Virginia, operates in three segments: retail, which is the sale of fuel and merchandise to retail consumers; wholesaling, which supplies fuel to third party dealers and consignment agents; and GPM Petroleum, which supplies fuel to GPM and its fuel subsidiaries (both in the retail and wholesale segments) as well as to sub-wholesalers and wholesale buyers.

GPM brands include Fas Mart, Shore Stop, Scotchman, BreadBox, Young’s, Li’l Cricket, Next Door Store, Village Pantry, Apple Market, Jiffi Stop, Admiral, Roadrunner Markets, Jiffy Food Marts, EZ Mart, 1 Stop and TownStar . The stores, which offer the fasREWARDS loyalty program, offer a wide selection of drinks, coffee, fountain drinks, sweets, savory snacks and other products. Exclusive food offerings include fresh chicken, freshly prepared salads, sandwiches, and take out.
Oak Street, based in Chicago, is a real estate investment company specializing in acquiring net leased properties from quality, creditworthy tenants. Its investment funds have $ 15 billion in discretionary acquisition capacity and co-investment capacity to deploy in tailor-made sale-leaseback and construction transactions. Oak Street specializes in providing flexible capital solutions to a variety of organizations including businesses, healthcare systems, universities, and government entities.

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