Susser Petroleum Partners (SUSP) and Susser Holdings (SUSS) provided an update on recent real estate activity and store openings. Susser Petroleum acquired four newly constructed Stripes convenience stores from Susser Holdings Corporation yesterday, in addition to four stores previously acquired during the month of November. The total cost to Susser Petroleum to acquire these eight stores was $29M, funded primarily through borrowings under the firm's revolving credit facility. Under the terms of the omnibus agreement, Susser Holdings will pay rent to Susser Petroleum equal to 8% of the cost of each store for an initial term of 15 years. In addition, Susser Petroleum will be the sole distributor of motor fuel to these eight stores at a fixed margin of 3c per gallon for an initial contract term of 10 years.
- Real Estate