Four Corners Property Trust (FCPT) has signed a definitive agreement with Brinker International subsidiaries to acquire 48 Chili’s Grill & Bar restaurants.
The transaction with the US-based real estate investment company, worth up to $155.7m, also involves an initial annual cash rent of up to approximately $9.9m.
Of the 48 restaurants, 14 are located in Florida, 13 in Texas and the remaining are spread across 15 states, including Arizona, California, Colorado, Los Angeles, North Carolina and Virginia among others.
All the restaurant locations involved in the transaction are under individual leases with 15 years of initial term, along with rent increases of 10% every five years during the initial term and a corporate guarantee from Brinker.
FCPT CEO Bill Lenehan said: “We are excited to partner with Brinker on this important transaction for both of our companies.
“FCPT focuses on building a high credit quality portfolio with household brand names, and we are excited to bring Chili’s branded real estate into our portfolio in such a meaningful way.
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“In addition to the attractive locations, we are particularly pleased with the property-level rent setting and strong coverage in this portfolio.”
The transaction is subject to due diligence and customary closing conditions and will close on 8 August this year.
Brinker currently owns and operates 1,686 restaurants, including 1,634 Chili’s restaurants and 52 Maggiano’s Little Italy restaurants.