EZ Energy Ltd. (TASE:EZ) today announced two deals, transacted through subsidiary EZ Energy USA Inc. The company has signed a non-binding contract to buy five gas stations and 35 fuel supply contracts for $3.6 million from an unnamed seller. In the second deal, the company has signed a non-binding contract to sell the land occupied by four gas stations and convenience stores in Cleveland, Ohio, for $6.9 million to a US REIT in a sell and lease-back deal.
EZ Energy will lease the properties for 20 years, with a 10-year option to extend. Rent will reflect a return on investment of 9.75% per year, amounting to $672,000 in the first year, and will rise by 2% in the second year.
If the sale is closed, EZ Energy will have sold the property rights to 16 of its 41 properties for a total of $24 million, amounting to 74% of the $32.5 million total investment in these properties, which it purchased in June.
EZ Energy's share rose 5.6% in early trading on the TASE to NIS 0.075.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2009
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