ARKO Corp.’s subsidiary GPM Investments, LLC Received a $1 Billion Real Property Commitment from Oak Street Real Estate Capital, LLC
Agreement provides significant additional flexibility to continue GPM’s acquisition growth strategy
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.”
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.
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Matter on behalf of ARKO