SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 13, 2005--Two of the leading financiers in the restaurant industry are increasing their focus on what each does best -- sale lease-back and mortgage loans. GE Commercial Finance, Franchise Finance bought $203 million in assets from Orlando-based Trustreet Properties, Inc. Trustreet is a restaurant real estate and financial services company formed from the merger between CNL Restaurant Properties and U.S. Restaurant Properties.
The sale consists of 159 real estate mortgage loans, representing the vast majority of loans in the Trustreet portfolio, which has interests in 2,800 properties located in 49 states and Washington D.C. They have assets valued at more than $2.6 billion, including the top tier brands in quick service and casual dining. Moving the loans allows Trustreet to focus more on sale-leaseback financing, which better positions them for growth.
"GE Commercial Finance, Franchise Finance gave us a very good offer on the loans and, in the matter of a couple of days, had a team of 18 people here making the deal happen," says Curtis McWilliams, president and CEO, Trustreet. "It's a win-win for both of us. For GE Commercial Finance, Franchise Finance, the loans become an ongoing part of their business, and from our perspective, selling them allows us to redeploy our capital into our core net lease business."
According to Diane Cooper, president and CEO, GE Commercial Finance, Franchise Finance, a broader focus within the restaurant industry combined with extensive experience in real estate mortgage loans made them an ideal partner for Trustreet.
"This acquisition presents a great opportunity for our business' growth," says Cooper. "We have continued to expand our presence in real estate mortgage lending, which is a major aspect of our business. This deal was successful largely because each side recognized the opportunity to strengthen its business in a core area."
About Trustreet
Trustreet Properties, Inc. (pronounced trust - street) is the largest self-advised restaurant real estate investment trust (REIT) in the United States. Trustreet, traded on the NYSE under the ticker symbol TSY, provides a complete range of financial, real estate and advisory services to operators of national and regional restaurant chains. For more information, visit our web site at www.trustreet.com.
About GE Commercial Finance
GE Commercial Finance, Franchise Finance (GEFF) is a leading lender for the franchise finance market via direct sales and portfolio acquisition in the United States and Canada. With more than $11 billion in served assets, GEFF serves more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, storage, and automotive industries. GEFF offers customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. More information is available at www.gefranchisefinance.com or by calling toll-free 866-GET-GEFF (438-4333).
GE Commercial Finance is the business-to-business finance unit of General Electric. With deep industry expertise and lending, leasing and financing services of every kind, GE Commercial Finance plays a key role in helping its customers grow. Conducting business in 35 countries, GE Commercial Finance has assets of more than US$230 billion and is headquartered in Stamford, Connecticut, USA.
General Electric (NYSE:GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems.
Contacts
Arment Dietrich Public Relations, Chicago
Gini Dietrich, 312-787-7249
[email protected]
or
GE Commercial Finance, Franchise Finance
Christine Roe, 480-563-6260
[email protected]
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340