RICHMOND, Va.—GPM Investments, a wholly owned subsidiary of ARKO Corp., extended its existing $1 billion agreement with Chicago-based real estate investment firm Oak Street Real Estate Capital by one year. By extending the agreement, GPM will have $1.15 billion during the second year of the term available.
ARKO and Oak Street extended an agreement that was originally signed in May 2021, in which Oak Street agreed to purchase and lease real estate to GPM or its affiliates. In addition to the $253 million of real estate purchased by Oak Street under the agreement, and the $130 million of real estate expected to be purchased in the recently announced acquisition of the fleet fueling card lock and distribution assets of Quarles Petroleum, Oak Street has committed up to $1.15 billion for the second year of the term.
“Working with Oak Street has given us significant dealmaking flexibility,” said Arie Kotler, president and chief executive officer of ARKO. “We plan to continue our highly successful acquisition model with even more creative solutions for sellers, who we believe recognize that we are an acquirer of choice because of our proven strategy of preserving strong local brands while closing deals at highly attractive multiples.”
GPM has completed 20 acquisitions since 2011, with 1,406 convenience stores in a community of brands and 1,628 wholesale sites that employ over 11,000 people in 33 states and the District of Columbia. The company recently announced its planned acquisition of Quarles Petroleum, marking its 21st acquisition, which is currently expected to close in the second quarter of 2022.
For more about ARKO’s vision for its future, read “Tying it All Together” from the March 2021 issue of NACS Magazine.