Tuesday, December 22, 2009
Tri Star Energy, owner of Daily's convenience stores, to sell properties
Source: bizjournals.comBy Eric Snyder, Staff Writer
Nashville-based Tri Star Energy, operator of the Daily's brand of convenience stores, will sell a number of its outlets and stores next year.
Chicago-based NRC Realty & Capital Advisors will handle Tri Star's “strategic divesture.”
According to an NRC news release, an as-yet-undisclosed number of parcels from Tri Star's portfolio will be sold through a sealed-bid sale in a 'buy one, some or all' format.
NRC plans to release a final list of sites in a brochure and via the NRC web site the week of Jan. 10. Current plans, according to the release, call for bids to be due on Feb. 18.
Tri Star currently distributes fuel to some 240 locations, including 100 Daily's stores. According to the news release, properties up for sale will include company-operated and consignment sites, supply-only sites and undeveloped parcels of land. The sites to be divested are scattered across the company's operating territory, which is primarily concentrated in central Tennessee but also extends into eastern portions of the state and Kentucky.
According to the news release, “proceeds from the divesture are to be used for expansion and acquisition opportunities currently available to the company.”
Reached by phone Tuesday, Tri Star CEO Steve Hostetter said the divesture model is a common one within the convenience store industry, and that NRC is recognized for soliciting a high number of bids and high proceeds.
Hostetter said stores have a high-production life-cycle of about 6 or 7 years. After those stores have peaked, Hostetter said it is prudent to redeploy the company's assets.
Hostetter said the expansion and acquisition opportunities ahead are speculative, and that Tri Star is not raising money for a specific target. He declined to preview the properties that will be divested.
Founded in 2000, Tri Star is a joint venture of Kimbro Oil Company, The Parman Corporation and Motive Enterprises LLC.