Benzinga | May 4, 2021 07:47AM EDT

ARKO Says Co's Subsidiary GPM Investments Receives $1B Real Property Commitment From Oak Street Real Estate Capital

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.