ARKO Corp.’s subsidiary GPM Investments, LLC Received a $1 Billion Real Property Commitment from Oak Street Real Estate Cap...
May 04 2021 - 7:30AM
GPM Investments, LLC, a wholly owned subsidiary of ARKO Corp.
(Nasdaq: ARKO), entered into an agreement with Chicago-based real
estate investment firm Oak Street Real Estate Capital, LLC ("Oak
Street"). Under and subject to the terms of the agreement, Oak
Street has agreed to purchase and lease to GPM real estate
associated with acquisitions of convenience store brands and
fueling stations. GPM would own and operate the related acquired
businesses, whereas Oak Street would own the real estate and lease
it to GPM. Oak Street is committing up to $1 billion to the program
for a one-year period.
As the seventh largest convenience store chain in the United
States, GPM has executed 18 acquisitions since 2011, growing the
company to almost 3,000 sites with more than 10,000 employees
operating in 33 states and Washington D.C. This agreement further
demonstrates the company’s continued commitment to aggressive
growth.
“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 Chief
Executive Officer of GPM. “We remain highly focused on our core
acquisition model, and we expect that this partnership will enhance
certainty of deal execution and as a result, strengthen our growth
as a company.”
“ARKO is a phenomenal company that is making the right strategic
decisions,” said Marc Zahr, Chief Executive Officer and Managing
Partner of Oak Street. “Their ability to utilize our balance sheet
to fund their real estate footprint allows them to focus on their
accretive growth and core operations. We are excited about what our
partnership can do for their business and to help fuel their
continued success.”
To learn more about GPM stores, visit: www.gpminvestments.com.
To learn more about ARKO, visit: www.arkocorp.com.
About ARKO Corp. and GPM:ARKO Corp. (Nasdaq:
ARKO) owns 100% of GPM Investments, LLC (“GPM”). Based in Richmond,
VA, GPM was founded in 2003 with 169 stores and has grown through
acquisitions to become the 7th largest convenience store chain in
the United States, with approximately 2,950 locations comprised of
approximately 1,350 company-operated stores and approximately 1,600
dealer sites to which it supplies fuel in 33 states and Washington
D.C. GPM operates in three segments: retail, which consists of fuel
and merchandise sales to retail consumers; wholesale, which
supplies fuel to third-party dealers and consignment agents; and
GPM Petroleum, which supplies fuel to GPM and its subsidiaries
selling fuel (both in the retail and wholesale segments) as well as
sub-wholesalers and bulk purchasers. Its stores offer its
fasREWARDS® high value loyalty program, a large selection of
beverages, coffee, fountain drinks, candy, salty snacks, and many
other products to meet the needs of the everyday customer. One
feature, setting many of its convenience stores apart is a wide
array of proprietary food offerings ranging from fresh chicken,
fresh-made salads, and sandwiches to healthy, grab-and-go
meals.
About Oak Street Real Estate Capital:Oak Street
Real Estate Capital, LLC (“Oak Street”) is a real estate investment
firm focused on acquiring properties net-leased to investment grade
and creditworthy tenants. Oak Street’s investment funds currently
have $15 billion of discretionary acquisition capacity and
co-investment capacity to be deployed into sale-leasebacks and
build-to suits. Oak Street specializes in providing flexible
capital solutions to a variety of organizations including
corporations, healthcare systems, universities and government
entities.
Forward-Looking Statements:This document
includes certain “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements may address, among other things, our
expected financial and operational results and the related
assumptions underlying our expected results. These forward-looking
statements are distinguished by use of words such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intends,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “will,” “would” the negative of these terms,
and similar references to future periods. These statements are
based on management’s current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ
materially from these expectations due to, among other things,
changes in economic, business and market conditions; our ability to
maintain the listing of our common stock and warrants on the Nasdaq
Stock Market; changes in our strategy, future operations, financial
position, estimated revenues and losses, projected costs, prospects
and plans; expansion plans and opportunities; changes in the
markets in which we compete; changes in applicable laws or
regulations, including those relating to environmental matters;
market conditions and global and economic factors beyond our
control, including the potential adverse effects of the ongoing
global coronavirus (COVID-19) pandemic on capital markets, general
economic conditions, unemployment and our liquidity, operations and
personnel; and the outcome of any known or unknown litigation and
regulatory proceedings. Detailed information about these factors
and additional important factors can be found in the documents that
ARKO files with the Securities and Exchange Commission, such as
Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak
only as of the date the statements were made. ARKO assumes no
obligation to update forward-looking information to reflect actual
results, changes in assumptions or changes in other factors
affecting forward-looking information, except as required by
applicable law.
Media ContactAndrew PetroMatter on behalf of
ARKO (978) 518-4531apetro@matternow.com
Investor ContactChris Mandeville(203)
682-8200ARKO@icrinc.com
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