Getty Realty Corp. Repossesses 788 Properties

Getty enters into new lease agreements with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sam’s Food Stores.

Getty Realty Corp.’s master lease with Getty Petroleum Marketing Inc. (Marketing) has been rejected by Marketing effective April 30, 2012, pursuant to an order of the Bankruptcy Court.  

The rejection was consistent with the expectations outlined in the Stipulation and Order approved by the U.S. Bankruptcy Court for the Southern District of New York on April 2, 2012.

All but one of the 788 properties Getty had leased to Marketing are affected by the rejection. As a result of this action, Getty is repossessing its portfolio of properties immediately.

 “We are pleased to be able to regain full control of this portfolio in accordance with our expectations and the public statements we made in March,” said David Driscoll, president and CEO of Getty. “It is our intention to continue the repositioning process that we started at the beginning of the year. While we understand it will take time to complete, the pace is already accelerating, evidenced by interim supply arrangements and new long-term triple-net leases with distributors, along with our ongoing process of selling non-core assets. Certainly, there is much work that still needs to be done, but our team is committed to substantially completing this process in the coming quarters.”

Getty also announced that on or about May 1, 2012 it had:

• Entered into long-term triple-net leases comprising 282 locations with affiliates of Lehigh Gas, Chestnut Petroleum Distributors, Ramoco Fuels and Sam’s Food Stores, as well as adding properties to an existing lease with MWS Enterprises (Arrowmart). The properties are located in New England, southern New Jersey, southeastern and central Pennsylvania and upstate New York (Buffalo) and are anticipated to generate approximately $17 million of annual triple-net GAAP revenue.

• Entered into an interim fuel supply and services agreement with Global Partners, LP to provide gasoline supply and certain oversight services with respect to approximately 254 locations located in the New York City metro area and New Jersey. Getty will receive monthly payments from gas station operators who occupy these properties under separate license agreements, while remaining responsible for certain costs including maintenance and taxes. Under its agreement with Global, Global will supply fuel to the licensee locations and will pay Getty a fee based on gallons sold.

• Entered into a variety of other fuel supply, direct leases and licenses for the remaining properties, excluding properties being marketed for sale.

• Sold five properties during the months of March and April for approximately $1.5 million.

In select locations, Getty and its new distributor tenants are encountering reluctance by former subtenants (or sub-subtenants) of Marketing to enter into temporary licenses or new sublease agreements offered to them. As a result, Getty and its new distributor tenants may experience temporary disruptions in the collection of rent receipts from these locations. Getty intends to directly or, as to locations subject of new leases, together with its new distributor tenants, pursue the dispossession process to the fullest extent permitted by law.

 

  • bloomlakeoil service

     
    Why are dealers resisting the new agrements. Can somebody  please provide more details regarding the dealers-subtenet issues??

    “Getty and its new distributor tenants are encountering reluctance by former subtenants (or sub-subtenants) of Marketing to enter into temporary licenses or new sublease agreements offered to them”.

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