Wednesday, February 28, 2024
Parkland to Sell 157 Canadian C-Stores
The company has decided to divest the sites, planning for its long-term growth format
Source: CStore Decisions
By Kevin McIntyreParkland has started the marketing process to sell 157 c-store and fuel station assets in Canada. The sites consist of fuel brands such as Chevron, Ultramar, Pioneer and FasGas.
The company noted that buyers in certain scenarios have the opportunity to operate under the popular c-store banner, On the Run.
The bulk of stations are located in Quebec and Ontario across major metropolitan areas and smaller cities and towns, with the balance of stores in Alberta, British Columbia, Manitoba and Saskatchewan. The retail and fuel locations will be packaged with long-term Parkland fuel supply agreements.
“These opportunities give new and seasoned entrepreneurs the chance to operate critical community businesses with established and respected brands,” the company noted in a press release.
Vice president of Canadian retail operations Francis Lapointe shared Parkland’s thought process in the decision to put the sites up for sale.
“The decision to divest these locations is part of our ongoing network planning and optimization process. As we continue to grow, we have identified sites that no longer fit our long-term strategic objectives in their current format. These sales will provide us with new opportunities to bolster core areas of our business,” he said. “In the end, these sites will still be part of our network and will represent our strong brands within our communities. We’re excited to bring in experienced, entrepreneurial operators who are eager to partner with brands and programs that customers trust.”
Convenience store operators, small business owners and entrepreneurs may bid on single or multiple sites through a sealed bid sale process. Parkland has partnered with NRC Realty & Capital Advisors, LLC; a company specializing in the marketing of convenience store properties and Colliers Canada to facilitate the transactions.
Interested parties must register for the sale in order to view a list of properties, sale FAQs and review terms and conditions of sale by visiting the sale website at www.cstorebids.ca, or by calling 1-855-558-1601. Interested parties are required to sign a confidentiality agreement prior to accessing the sale information.
‘On the Run’ Into the Future
A big part of Parkland’s growth strategy has been its recent investment into the electric vehicle (EV) market.
In November 2023, the company secured up to $210 million of financing from Canada Infrastructure Bank (CIB) to support the multi-year growth of its electric vehicle (EV) charging network.
Parkland’s existing EV network is primarily located in British Columbia, which has the highest proportion of EV drivers in North America. The company’s EV charging stations are co-located with its retail fuel sites.
In November, Parkland operated 37 locations that offer EV charging, with plans to bring that number to 50 early this year.
“Our initial investments in EV charging have been positive,” said Darren Smart, senior vice president, energy transition and corporate development. “Strong customer utilization has validated our strategy to build scale in markets with tangible demand and has confirmed our belief that a high-quality customer experience matters.”
Through its deal with CIB, Parkland received an 18-year financing facility on attractive financial terms, including principal repayments which are tied to utilization of the installed EV chargers. CIB will fund up to 80% of capital deployed to install the chargers over four years, significantly de-risking the expansion of Parkland’s EV charging network.
Parkland is an international fuel distributor and retailer with operations in 25 countries. The company operates approximately 4,000 retail and commercial locations across Canada, the U.S., and the Caribbean region.