Galyan's Trading Company, Inc. announced on Tuesday the completion of a sale-leaseback transaction for three stores with an investment trust of W.P. Carey & Co. LLC.
The Company sold three retail facilities, totaling approximately 260,000 square feet, for approximately $21 million to CPA(R):15, a member of the $5 billion W.P. Carey Group. The stores included were Buffalo, New York, Greenwood, Indiana, and a future store in Freehold, New Jersey that is scheduled to open in the summer of 2004. Approximately $9 million of the $21 million total is attributable to the future store in Freehold, New Jersey, and will not be funded fully until that store opens. This will bring the total properties the Company leases through the W.P. Carey Group to eight.
The proceeds from this transaction will be used to repay current borrowings under the Company's revolving credit facility.
Robert B. Mang, Chief Executive Officer and Chairman of the Company, commented, “The completion of this transaction allows us to strengthen our balance sheet and provide additional liquidity to fund new store growth. We are pleased that the W.P. Carey Group has chosen Galyan's to partner with through transactions involving existing properties as well as a future store site. We look forward to this long term partnership with W.P. Carey.”
