Hospitality Properties Trust is close to signing a $2.4 billion purchase deal for Spirit MTA REIT rental real estate portfolio, Reuters reported, citing people familiar with the matter.
The deal involves 774 retail properties leased to tenants across 22 different industries and is set to diversify Hospitality Properties' hotel and travel center portfolio into retail properties such as restaurants, movie theaters and car service stations. An agreement could be announced as early as June 3, the newswire reported, adding that the trust will use a $2 billion bank loan to fund the deal.
The potential transaction excludes about 100 assets that Spirit MTA leased mainly to Specialty Retail Shops Holding Corp., or Shopko, a general merchandise store operator that filed for bankruptcy in January. This led the retail real estate investment trust to explore options, including a sale of the company, according to the sources.
Shopko accounted for 18% of Spirit MTA's revenue from contractual rent in 2018, Reuters added.