ContractProperty Acquisition and Lease Agreements • August 9th, 2006 • Spirit Finance Corp • Real estate investment trusts
On May 31, 2006, Spirit Finance Corporation (“Spirit Finance”) acquired 178 real estate properties from SKO Group Holding Corp. (“SKO”) for $815.3 million (the “Property Acquisition”). In conjunction with the Property Acquisition, Spirit Finance entered into long-term triple-net master lease agreements with two wholly-owned subsidiaries of SKO. The SKO subsidiaries operate over 350 general merchandise retail locations under the “ShopKo” and “Pamida” names in both mid-sized to larger cities and small, rural communities across the Midwest, North Central, Rocky Mountain and Pacific Northwest states. At June 30, 2006, Spirit Finance’s real estate leased to these subsidiaries accounted for approximately one-third of Spirit Finance’s total real estate investments. As Spirit Finance continues to acquire additional real estate investments, this concentration is expected to decrease.
