GPM extends $1 billion C-Store acquisition financing agreement with Blue Owl

Logo/Arko, GPM

GPM Investments LLC, a subsidiary of Arko Corp., has extended by one year its ongoing agreement with real estate investment and asset management firm Blue Owl Real Estate Fund for Blue Owl to make $1.5 billion available for convenience store acquisitions. According to documents filed with the US Securities and Exchange Commission (SEC), the existing agreement – the fifth – expired on September 30.

On May 3, 2021, GPM entered into a “ready-made real estate purchase, designation and leasing program agreement” with New York-based Blue Owl, then known as Oak Street Real Estate Capital Fund. Blue Owl has agreed to purchase up to $1.5 billion in properties including convenience stores and gas stations, cardlock gas stations and, subject to Blue Owl’s reasonable consent, other types or categories of properties that GPM may acquire.

Following any such purchase, GPM would enter into one or more triple-net leases with Blue Owl, and GPM would lease the properties from Blue Owl on the commercial terms contained in the program agreement.

• GPM Investments is No. 6 ON CSP 2024 Most Popular 202 ranking of American c-store chains by the number of stores.

On September 30, GPM and Blue Owl entered into a sixth amendment to the program agreement, which extends the agreement term and exclusivity of Blue Owl through September 30, 2025, subject to certain early termination events, and provides for up to $1 billion in contract capacity programming from May 2, 2023 until the expiration of the exclusivity period, subject to reduction by any amounts that Blue Owl pays to GPM in connection with other potential projects.

The other material terms of the program agreement remained substantially unchanged.

Richmond, Virginia-based Arko operates in four segments: retail, which includes c-stores selling merchandise and fuel; a wholesaler that supplies fuel to independent dealers and shipping agents; GPM Petroleum, which sells and delivers fuel to its retail and wholesale facilities; and fleet refueling, which includes servicing own and foreign cardlock locations and issuing own fuel cards, providing customers with access to a nationwide network of refueling points.

By frequent takeoversGPM has a so-called “community brand family” consisting of more than 25 regional c-store brands, including 1 Stop, Admiral, Apple Market, BreadBox, Express Stop, EZ Mart, Fas Mart, Jetz, Jiffi Stop, Jiffy Stop Food Marts, Li’l Cricket, Next Door Store, Pride, Roadrunner Markets, Rstore, Scotchman, Shore Stop, TownStar, Village Pantry and Young’s.

Arko is reportedly planning to divest its retail store business, and the deal could be worth around $2 billion. Reports show it is working with investment bank Citigroup to sell the stake of about 1,500 C-stores it currently owns. Reports indicate that the company intends to end its long-term retail expansion strategy in the face of slowing sales.

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