EVgo Leverages Strategic Capital Model to Grow
Fast Charging Footprint
NEW
YORK, March 26, 2024 /PRNewswire/ -- SLB Capital
Advisors, a real estate advisory firm focused on executing sale
leasebacks for corporations and sponsors, arranged four leasing
transactions on behalf of EVgo, a leader in electric vehicle
charging solutions, by Q1 2024.
SLB worked on behalf of EVgo to identify and source an
institutional investor to fund cornerstone properties for EVgo's
hubs business. The properties are located in Los Angeles, CA, Santa Monica, CA, San Diego, CA and Brooklyn, NY and are expected to feature fast
charging stalls owned and operated by EVgo. The total property
value of the transactions was approximately $27 million.
Upon sale of certain properties to an institutional
investor, EVgo simultaneously leased back the properties under
a long-term lease with multiple renewal options.
Malik Franklin, a partner with
SLB Capital Advisors, and the principal architect of the
transaction, said the deal is noteworthy for investors because the
underlying real estate housing the charging stations represents an
emergent source of exposure to renewable assets for both
traditional sale leaseback investors and the growing stable of
infrastructure investors. "Charging stations often occupy
desirable, urban locations, and once established, can generate the
stable cashflows that support institutional ownership of the
underlying assets."
He added that current cap rates make sale leasebacks an
important source of both growth and permanent capital. "In the
current interest rate environment, sale leaseback financing offers
an attractive source of financing as its cost can be well inside of
other forms of financing. Coupled with the fact that the sale
leaseback as a financing tool allowed us to creatively address
special considerations such as development and entitlement risk,
credit risk, and end-user risk, we expect to see sale leasebacks
used more broadly as a financing tool in the EV and other
ESG-related industries, such as green recycling and renewable
energy production."
Commenting on the transactions, Badar Khan, chief executive officer of EVgo said
sale leasebacks offer another tool in EVgo's kit for funding the
company's growth. "The sale leaseback model is a highly effective
capital structure that allows EVgo to maintain a nimble
position in the market, enabling us to focus on what matters most:
installing more fast chargers for our customers. With well over a
decade of experience in deploying fast charging infrastructure,
EVgo continues to innovate as we deliver a customer-centric fast
charging network designed to serve all EV drivers."
Scott Merkle, managing partner of SLB Capital Advisors,
added "Our exclusive focus on sale leasebacks, ability to find the
optimal investor, and consideration of creative approaches to
address the specialized funding requirements in the EV space,
helped us to deliver to EVgo a blueprint for these types of
transactions in the future."
About SLB Capital Advisors LLC
SLB Capital
Advisors is a real estate advisory firm focused on sale
leasebacks and M&A-related real estate transactions. SLB
Capital Advisors, comprised of a team with decades of investment
banking and capital raising experience, leverages its expertise in
sale leasebacks and corporate finance to help corporations and
private equity groups recognize value arbitrage opportunities,
enhance returns and strengthen balance sheets. SLB Capital Advisors
is headquartered in New York City.
Learn more about SLB Capital Advisors by visiting
www.slbcapitaladvisors.com.
About EVgo
EVgo (Nasdaq: EVGO) is a leader in
charging solutions, building and operating the infrastructure and
tools needed to expedite the mass adoption of electric vehicles for
individual drivers, rideshare and commercial fleets, and
businesses. EVgo is one of the nation's largest public fast
charging providers, featuring over 950 fast charging locations
across more than 35 states, including stations built through EVgo
eXtend™, its white label service offering. EVgo is
accelerating transportation electrification through partnerships
with automakers, fleet and rideshare operators, retail hosts such
as grocery stores, shopping centers, and gas stations, policy
leaders, and other organizations. With a rapidly growing network
and unique service offerings for drivers and partners including
EVgo Optima™, EVgo Inside™, EVgo
Rewards™, and Autocharge+, EVgo enables a world-class
charging experience where drivers live, work, travel and play.
Media Contact:
David Evanson
david@davidevanson.com
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SOURCE SLB Capital Advisors