US gas station and convenience store operator, GPM Investments LLC, owned by Gmul Investments (TASE:GMUL) and DJG Industries (TASE: DJEG), both controlled by Amnon Barzilai and Eyal Yona, has signed an MOU with a foreign real estate corporation with income-producing properties in the US. Under the MOU, GPM will grant an option to buy 23 gas stations and convenience stores in Virginia, currently leased to GPM in long-term contracts.
If the option is exercised, GPM will receive $5 million in net pretax proceeds. GPM is examining the effect of the deal on its financial results. Under the MOU, the real estate corporation will lease the gas stations to GPM at terms similar to those it had previously, i.e. 15 years, with three five-year options to extend, at $2.6 million in rent a year. The deal is expected to be closed by the end of March.
GPM owns 160 gas stations and convenience stores in the US Southeast, and also supplies fuel to 74 gas stations operated by external operators. GPM posted $106.5 million in revenue for January-September 2004, including $75 million from the sale of fuel. It posted a net profit of $272,000 for January-September 2004, compared with $835,000 for the corresponding period of 2003.
Published by Globes [online], Israel business news - www.globes.co.il - on February 22, 2005