EZ Energy, an Israel-based firm formerly known as Adiron Investments, has sold 18 gas stations in the US for $24.5m in a sale and lease-back deal.
The buyer will lease back the properties to EZ Energy USA for 15 years, with an option to extend for a further 15-30 years, for $2.27m a year, reported csnews.com.
EZ Energy USA will reportedly payback $12m out of the sale proceeds to the banks from where the company took the original loan to buy the properties.
The company will have to buy land at two gas stations for an estimated $1.15m before the sale to the buyer. The company said the lease-back of the gas stations reflects an initial return on investment of 9.25% a year. Rent will rise by 2% yearly.
EZ Energy, through its subsidiaries, owns and operates gas stations and convenience stores. The company owns 100 gas stations in the US.
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