GE Capital to Acquire Restaurant REIT Trustreet Properties for $3 Billion

Commercial Property News - October 30, 2006

GE Capital Solutions has agreed to buy Trustreet Properties Inc., the largest publicly traded restaurant REIT in the U.S., for $3 billion. GE Capital will pay $17.05 per outstanding share of Trustreet's common stock and assume or refinance Trustreet's outstanding debt.

The strategy behind the GE Capital Solutions acquisition is to add to the company's sale and leaseback capabilities. "Right now we have about one-half billion dollars in our sale-leaseback portfolio," John Oliver, a GE Capital Solutions spokesperson told CPN today. "When the acquisition closes, we will add about $3 billion to that."

As the business-to-business leasing, financing, and asset management unit of GE, GE Capital Solutions lends in the franchise finance market through direct sales and portfolio acquisitions in the U.S. and Canada. With more than $11 billion in assets, the GE unit has financed more than 20,000 properties, primarily in the restaurant, hospitality, branded beverage, storage, and automotive industries.

Trustreet provides sale-leaseback financing for operators of national and regional restaurant chains including Applebee's, Arby's, Bennigan's (pictured), Burger King, Golden Corral, IHOP, Jack in the Box, KFC, Pizza, Hut, TGI Friday's and Wendy's. The company's portfolio contains more than 2,000 full-service, family, and quick service restaurants operated by more than 500 tenants in 49 states. Sphere: Related Content