(Alliance News) - Applegreen PLC on Tuesday confirmed that it is part of Empire State Thruway Partners, which has been awarded a conditional 33-year lease for the design, construction, financing, operation and maintenance of the 27 motorway service areas on the New York State Thruway.
The Irish petrol filling station operator noted that the award is subject to successful completion of a financial plan and the subsequent approval by the New York State Thruway Authority and other regulators.
The award is also subject to the partners securing financing for the project, a process which is ongoing.
Subject to the lease award completing, Applegreen said the partners will invest USD300 million between the second half of 2021 and the first half of 2025 in redevelopment capital expenditure which will be comprised of a mix of equity and project finance debt.
Applegreen said it will operate all 84 food and beverage outlets expected to be constructed and a retail store on each site. Applegreen is expected to have a minority shareholding in the partnership and its equity contribution for the transaction is still to be determined.
Applegreen is not expected to make any equity contribution before 2023, the company highlighted.
Applegreen shares were trading 3.2% higher in London on Tuesday at 325.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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