EG Group sells $1.5 billion US property portfolio to reduce debt
The Issa brothers’ EG Group has sold a $1.5 billion portfolio of sites on the east coast of the US to Realty Income Corporation.
The deal includes 415 store assets under the Cumberland Farms, Fastrac, Tom Thumb and Sprint banners.
EG America will continue to operate and trade the sites while paying an initial rent to Realty Income Corporation of $103 million per annum.
The group said it received a high degree of interest from multiple blue-chip investors and attractive terms for the transaction.
With the deal expected to close in the second quarter of 2023, the net proceeds will be used to repay debt. The assets represent around 15% of EG Group’s total freehold property in 10 markets.
Zuber Issa, co-founder and co-chief executive of EG Group, said: “Today’s announcement demonstrates the progress we continue to make to put in place a robust capital structure for the medium term that will underpin our long-term strategy and represents an important first step in this process.”
