Service Properties Trust has completed the sale of 123 net lease properties with approximately 2.4 million square feet in 26 states with leases requiring an aggregate of $34.1 million of annual minimum rents for $435 million, excluding closing costs.
The sale is part of SVC’s previously announced disposition plan to sell up to $500 million of net lease assets in connection with its acquisition of a net lease portfolio of service-oriented retail properties from Spirit MTA REIT.
“The disposition of this net lease portfolio represents a pivotal step in executing on the company’s strategy to sell certain non-core assets acquired as part of the SMTA transaction,” said John Murray, Service Properties Trust’s President and Chief Executive Officer. “Coupled with our other recent net lease sales and agreements to sell totaling $66 million, we have reached our target of $500 million in net lease asset sales, the proceeds of which will be used to reduce the company’s leverage.”
Three additional net lease properties that SVC has agreed to sell are subject to rights of first refusal to purchase those properties. SVC expects those rights of first refusal will be exercised. These sales are expected to close by the end of 2019 for an aggregate of approximately $3 million.
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties located in 48 states, Washington, DC, Puerto Rico and Canada.