Global Partners LP has received “significant interest from prospective buyers” for the 86 East Coast convenience stores it put on the sales block last month, President and CEO Eric Slifka stated Monday during the master limited partnership’s (MLP) 2016 fiscal first-quarter earnings call. Final bids on the stores — located in Connecticut, Maine, Maryland, New Hampshire, New York and Rhode Island — are due by the end of June.
Global Partners retained NRC Realty & Capital Advisors LLC to conduct the sale, with the retailer hoping to receive a purchase price of approximately $100 million for the 86 sites.Slifka noted that he's seen c-stores recently sell in EBITDA multiples of six times to as many as double-digit times, based upon if a buyer is only purchasing the real estate or if the real estate is being sold along with an established store location.
The 86 East Coast stores are part of a larger plan for Global Partners to sell a total of 125 convenience stores by the end of this year. Slifka did not state why Global Partners wants to specifically sell the East Coast stores, but did say that, in general, when it decides to sell off retail locations, it is because they are considered non-strategic assets.
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